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HF Foods Group Inc. (HFFG-3.78%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing includes financial statements for the year, showing net revenue of $1,201.7 million, a 4.6% increase from $1,148.5 million in 2023. This increase was primarily due to volume growth and improved pricing in certain categories.
Cost of revenue for the year was $996.5 million, representing 82.9% of sales, compared to 82.2% in the previous year. Gross profit was reported at $205.2 million, with a gross profit margin of 17.1%, down from 17.8% in 2023.
The company reported a net loss of $48.5 million for the year, compared to a net loss of $2.2 million in 2023. This increase in loss was primarily due to a goodwill impairment charge of $46.3 million.
Distribution, selling, and administrative expenses increased by $3.0 million to $198.0 million, primarily due to higher payroll and insurance costs, partially offset by reduced professional fees.
Interest expense for the year was $11.4 million, a slight decrease from $11.5 million in 2023, due to a decrease in the average daily balance of the mortgage-secured term loan.
The company also reported a $3.9 million settlement payment to the SEC related to an investigation into previous financial disclosures.
HF Foods has a working capital of $32.9 million as of December 31, 2024, and cash of $14.5 million. The company believes it has sufficient funds to meet its working capital requirements and debt obligations in the next twelve months.
The filing also details the company's strategic initiatives, including a focus on expanding its distribution network and improving operational efficiencies through technology upgrades.
HF Foods identified material weaknesses in its internal control over financial reporting, which it is actively working to remediate through various measures, including hiring new personnel and implementing new systems.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the HF Foods Group Inc. annual 10-K report dated March 17, 2025. To report an error, please email earnings@qz.com.