Company: HFFG
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001680873-25-000036
Chunk: 78

Company: HF Foods Group Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 2
Chunk 78
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154Lease guarantee income— (115)115Loss before income taxes(2,462)(740)(1,722)Income tax benefit(932)(181)(751)Net loss and comprehensive loss(1,530)(559)(971)Less: net income attributable to noncontrolling interests115 135 (20)Net loss and comprehensive loss attributable to HF Foods Group Inc.$(1,645)$(694)$(951)

22

The following table sets forth the components of our consolidated results of operations expressed as a percentage of net revenue for the periods indicated:

Three Months Ended March 31,20252024Net revenue100.0 %100.0 %Cost of revenue82.9 %82.9 %Gross profit17.1 %17.1 %Distribution, selling and administrative expenses16.7 %17.1 %Income (loss) from operations0.4 %— %Interest expense0.9 %1.0 %Other expense (income), net(0.1)%— %Change in fair value of interest rate swap contracts0.4 %(0.7)%Lease guarantee income— %— %Loss before income taxes(0.8)%(0.3)%Income tax benefit(0.3)%(0.1)%Net loss and comprehensive loss(0.5)%(0.2)%Less: net income attributable to noncontrolling interests— %— %Net loss and comprehensive loss attributable to HF Foods Group Inc.(0.6)%(0.2)%

Net Revenue

Net revenue for the three months ended March 31, 2025 increased by $2.8 million, or 0.9%, compared to the same period in 2024. This growth was achieved despite one fewer day of operations compared to the prior year period.  The increase was primarily attributable to volume increases and improved pricing in Commodity, Meat & Poultry and Seafood, offset by a decrease in volume within other categories. 

Gross Profit

Gross profit was $51.0 million for three months ended March 31, 2025 compared to $50.4 million in the same period in 2024, an increase of $0.5 million, or 1.1%. The increase was primarily attributable to an increase in margins on Commodity and Seafood during the quarter. Gross profit margin for the three months ended March 31, 2025