The following is a summary of the HF Foods Group Inc. (HFFG) Q1 2024 Earnings Call Transcript:
Financial Performance:
HF Foods reported Q1 net revenue of $295.7 million, up 0.6% year over year, driven mainly by product cost inflation and improved pricing in some categories.
Gross profit increased by 0.5% to $50.4 million for the quarter.
The company's operating income for the quarter marked a loss of $0.1 million, improving from a loss of $2.8 million the previous year.
Net loss improved to $0.6 million for Q1, compared to a net loss of $5.8 million for the prior year.
Adjusted EBITDA increased by approximately 51.4% to $8.7 million for the quarter, as compared to $5.7 million for the prior year.
Business Progress:
HF Foods' operational transformation plan, including centralized purchasing and a nationwide fuel savings program, is well underway.
To increase efficiency, the company has ordered replacements for 25% of its fleet, with new trucks expected to be in service by the end of 2024.
Part of a digital transformation process, they're implementing a modern ERP solution.
The first phase of facility upgrade initiatives has begun, with two new state-of-the-art facilities in the Southeast region.
For further geographic expansion, the company is actively exploring a M&A growth strategy.
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