Company: HFFG
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001680873-25-000006
Chunk: 1

Company: HF Foods Group Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 7
Chunk 1
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.1)%0.1 %Lease guarantee income(0.5)%— %Loss before income taxes(3.8)%(0.2)%Income tax expense0.2 %— %Net loss and comprehensive loss(4.0)%(0.2)%Less: net income (loss) attributable to noncontrolling interests— %— %Net loss and comprehensive loss attributable to HF Foods Group Inc.(4.0)%(0.2)%

Net Revenue

Net revenue for the year ended December 31, 2024 increased by $53.2 million, or 4.6%, compared to the same period in 2023. This increase was primarily attributable to volume growth associated with new wholesale accounts, case count growth, product cost inflation and improved pricing in certain categories, partially offset by the $13.3 million loss in revenue resulting from the exit of our chicken processing businesses during the second half of 2023.

Gross Profit

Gross profit was $205.2 million for the year ended December 31, 2024 compared to $204.0 million in the same period in 2023, an increase of $1.2 million, or 0.6%. The gross profit increase was primarily attributable to increased net revenue partially offset by increased costs. Gross profit margin for the year ended December 31, 2024 decreased to 17.1% compared to 17.8% in the same period in 2023. 

Distribution, Selling and Administrative Expenses

Distribution, selling and administrative expenses of $198.0 million for the year ended December 31, 2024 increased compared to prior year expenses of $195.1 million primarily due to an increase of $4.3 million in payroll and related labor costs and an increase of $1.1 million in insurance costs, partially offset by a decrease of $2.8 million in professional fees. Distribution, selling and administrative expenses as a percentage of net revenue decreased to 16.5% for the year ended December 31, 2024 from 17.0% in the same period in 2023, primarily due to lower professional fees and increased net revenue, partially offset by increased payroll and related labor costs and insurance costs.

Interest Expense

Interest expense for the year ended December 31, 2024 decreased by $0.1 million or 0.5%, compared to the year ended December 31, 2023,