Financial Data and Key Metrics Changes - Net revenue increased by 0.9% year over year to $298.4 million from $295.7 million in the prior year quarter [11] - Adjusted EBITDA rose by 12.3% year over year to $9.8 million, up from $8.7 million in the prior year quarter [14] - Gross profit increased by 1.1% to $51 million compared to $50.4 million in the same period in 2024 [11] - Operating income improved to $1.2 million from an operating loss of $0.1 million in the prior year quarter [13] - Net loss increased to $1.5 million from a net loss of $0.6 million in the prior year quarter, primarily due to unfavorable changes in interest rate swaps [13] Business Line Data and Key Metrics Changes - The increase in net revenue was primarily driven by volume increases and improved pricing in the commodity, meat, poultry, and seafood categories [11] - Distribution, selling, and administrative expenses decreased by $0.7 million to $49.7 million due to cost optimization efforts [12] Market Data and Key Metrics Changes - The industry continues to face macro headwinds, particularly due to new tariff policies and supply chain disruptions [6] - The company is actively diversifying its supplier base and exploring alternative sourcing strategies to mitigate these challenges [6] Company Strategy and Development Direction - The company is focused on executing comprehensive transformation initiatives, with 2025 being a year of strategic investment [15] - Investments in digital infrastructure and operations are aimed at establishing a strong foundation for future growth [15] - The company aims to leverage its position as a leading nationwide Asian specialty distributor to capitalize on the growing demand for authentic Asian cuisine [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance and long-term plans despite short-term uncertainties [6][15] - The successful implementation of a new ERP application is expected to enhance efficiency and decision-making across operations [7] - The company remains disciplined but optimistic about M&A opportunities in 2025 and beyond [9] Other Important Information - The company finalized a comprehensive plan to reduce cash distribution, selling, and administrative expenses by 3% to 5% by the end of 2025 while preserving core growth initiatives [12] - Strategic facility enhancements are underway, with renovations at the Charlotte distribution center expected to be completed by the end of Q2 2025 [8] Q&A Session Summary - No specific questions and answers were provided in the content.

Financial Performance - 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, primarily due to volume increases and improved pricing in Commodity, Meat & Poultry, and Seafood [120]. - Gross profit was $51.0 million for the 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% [121]. - Adjusted EBITDA for the three months ended March 31, 2025, was $9.8 million, compared to $8.7 million in the same period in 2024, reflecting an increase of $1.1 million [109]. - For the three months ended March 31, 2025, the company reported an Adjusted EBITDA of $9,773,000, an increase of 12.3% from $8,702,000 in the same period of 2024 [126]. - The gross profit margin for the three months ended March 31, 2025, remained consistent at 17.1% compared to the same period in 2024 [121]. - Net loss was $1.5 million for the three months ended March 31, 2025, compared to a net loss of $0.6 million for the same period in 2024, primarily driven by changes related to the fair value of interest rate swap contracts [125]. - The company recorded a net loss of $1,530,000 for the three months ended March 31, 2025, compared to a net loss of $559,000 in 2024 [126]. Expenses and Cash Flow - Distribution, selling, and administrative expenses decreased by $0.7 million, or 1.4%, to $49.8 million for the three months ended March 31, 2025, primarily due to a decrease in professional fees [122]. - Interest expense for the three months ended March 31, 2025, was $2.6 million, a slight decrease from $2.8 million for the same period in 2024 [123]. - Net cash provided by operating activities decreased by $4,276,000 to $6,948,000 for the three months ended March 31, 2025, compared to $11,224,000 in 2024 [133]. - The company believes its cash flow from operations is sufficient to meet normal working capital needs for at least the next twelve months [129]. Investments and Debt - The company’s net cash used in investing activities increased by $979,000 to $3,564,000 for the three months ended March 31, 2025, primarily due to increased capital project spending [135]. - As of March 31, 2025, the company had cash of approximately $16.1 million and access to an additional $60.0 million through a $125.0 million line of credit [128]. - The average daily line of credit balance increased by $4.0 million, or 9.0%, to $48.7 million for the three months ended March 31, 2025 [123]. - As of March 31, 2025, the company’s aggregate floating rate debt's outstanding principal balance was $60.8 million, representing 36.6% of total debt [147]. - The company has an amortizing interest rate swap contract with JPMorgan Chase for an initial notional amount of $120.0 million, expiring in March 2028, to hedge floating rate loans exposure [130]. Operational Changes - The company has initiated a comprehensive operational transformation plan focused on centralized purchasing, fleet and transportation improvements, digital transformation, and facility upgrades [107]. - The company acquired two frozen seafood suppliers in 2022, expanding its distribution network across several states [105]. Market Conditions - The average price of diesel fuel decreased by 8.7% in the first quarter of 2025 compared to the same period in 2024, although future prices remain unpredictable [148]. - The company recorded a goodwill impairment charge of $46.3 million during the fourth quarter of the year ended December 31, 2024, due to a decline in stock price [138].

Exhibit 99.1 HF Foods Reports First Quarter 2025 Financial Results Year over year growth in Net Revenue and Gross Profit Las Vegas, NV – May 12, 2025 – HF Foods Group Inc. (NASDAQ: HFFG) ("HF Foods" or the "Company"), a leading distributor of international foodservice solutions to Asian restaurants and other businesses across the United States, reported its unaudited financial results for the quarter ended March 31, 2025. First Quarter 2025 Financial Results Management Commentary Felix Lin, President and Ch ...

Core Viewpoint - HF Foods Group Inc. reported stable top-line growth in Q1 2025, with net revenue increasing by 0.9% year-over-year to $298.4 million, driven by strength in its core customer base and pricing discipline despite operational challenges [3][6][9]. Financial Performance - Net revenue for Q1 2025 was $298.4 million, up from $295.7 million in the prior year, reflecting a $2.8 million increase [6][9]. - Gross profit rose to $51.0 million, a 1.1% increase from $50.4 million in the same period last year, maintaining a gross profit margin of 17.1% [4][7][9]. - Operating expenses decreased slightly year-over-year, representing 16.7% of net revenue, down from 17.1% [5][8][9]. - The net loss for Q1 2025 was $1.5 million, compared to a net loss of $0.6 million in the prior year, primarily due to non-cash changes in interest rate swap contracts [5][10][9]. - Adjusted EBITDA increased by 12.3% to $9.8 million from $8.7 million in the previous year [5][11][9]. Cash Flow and Liquidity - Cash provided by operating activities was $6.9 million for Q1 2025, down from $11.2 million in the prior year, mainly due to timing of working capital outlays [12]. - As of March 31, 2025, the company had cash of $16.1 million and access to approximately $60.0 million in additional funds through a line of credit [12]. Operational Insights - The company is focused on enhancing margins, streamlining operations, and executing strategic technology investments to support long-term profitability [5][6]. - The growth in net revenue was attributed to volume increases and improved pricing in Commodity, Meat & Poultry, and Seafood categories, despite a decrease in volume in other categories [6][9]. Company Overview - HF Foods Group Inc. is a leading distributor of international foodservice solutions to Asian restaurants and other businesses across the United States, leveraging its nationwide distribution network [14].

Core Viewpoint - HF Foods Group Inc. is set to report its financial results for the first quarter of 2025 on May 12, 2025, after market close, highlighting its ongoing operations and performance in the foodservice distribution sector [1]. Company Overview - HF Foods Group Inc. is a prominent distributor of fresh produce, frozen and dry food, and non-food products, primarily serving Asian restaurants and other foodservice customers across the United States [3]. - The company aims to meet the growing demand for Asian American cuisine by utilizing its extensive network of distribution centers and strong relationships with growers and suppliers in both the US and Asia [3]. - HF Foods is headquartered in Las Vegas, Nevada, and trades on Nasdaq under the symbol "HFFG" [3].

Core Viewpoint - The article emphasizes the importance of value investing and highlights HF Foods Group (HFFG) as a strong value stock based on its financial metrics and Zacks Rank [1][2][7] Group 1: Company Overview - HF Foods Group (HFFG) currently holds a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating strong potential for value investors [4] - The stock has a Forward P/E ratio of 6.49, significantly lower than the industry average of 16.06, suggesting it may be undervalued [4] - Over the past year, HFFG's Forward P/E has fluctuated between a high of 14.56 and a low of 3.67, with a median of 7.15 [4] Group 2: Valuation Metrics - HFFG's P/B ratio stands at 0.80, compared to the industry's average P/B of 1.99, indicating a favorable valuation [5] - The P/B ratio for HFFG has ranged from a high of 1.07 to a low of 0.37 over the past year, with a median of 0.61 [5] - The P/CF ratio for HFFG is 7.85, which is attractive compared to the industry's average P/CF of 14.04, further supporting its undervaluation [6] - HFFG's P/CF has varied between a high of 10.56 and a low of 3.66 in the past 12 months, with a median of 5.95 [6] Group 3: Investment Outlook - The combination of HFFG's strong valuation metrics and positive earnings outlook suggests that the stock is likely undervalued at present [7]

Company Overview - HF Foods Group Inc. (HFFG) currently holds a Momentum Style Score of A, indicating strong momentum characteristics [3] - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to the market [4] Performance Metrics - HFFG shares have increased by 59.55% over the past week, significantly outperforming the Zacks Food - Miscellaneous industry, which rose by only 0.07% during the same period [6] - Over the past month, HFFG's price change is 155.68%, while the industry has seen a mere 0.01% increase [6] - In the last quarter, HFFG shares rose by 46.89%, and over the past year, they gained 35.14%, contrasting with the S&P 500's performance of -4.38% and 9.82%, respectively [7] Trading Volume - The average 20-day trading volume for HFFG is 289,293 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, one earnings estimate for HFFG has been revised upward, while none have been lowered, leading to an increase in the consensus estimate from $0.43 to $0.50 [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions [10] Conclusion - Considering the strong performance metrics and positive earnings outlook, HFFG is positioned as a promising momentum pick with a Momentum Score of A and a Zacks Rank of 2 (Buy) [12]

Group 1 - HF Foods Group Inc. (HFFG) is currently outperforming its peers in the Consumer Staples sector, with a year-to-date return of 10.6% compared to the sector's average return of 4.8% [4] - The Zacks Rank for HFFG is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for HFFG's full-year earnings has increased by 16.3% in the past quarter, reflecting improved analyst sentiment [4] Group 2 - HF Foods Group Inc. is part of the Food - Miscellaneous industry, which has seen a decline of about 2.9% year-to-date, further highlighting HFFG's strong performance relative to its industry [6] - Another notable stock in the Consumer Staples sector is Primo Brands (PRMB), which has a year-to-date increase of 5.3% and a Zacks Rank of 1 (Strong Buy) [5][6] - The Beverages - Soft drinks industry, to which Primo Brands belongs, has performed better than the Food - Miscellaneous industry, with a year-to-date increase of 7.8% [6]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify high valuations [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy [3] Group 2: HF Foods Group Inc. (HFFG) Analysis - HFFG has shown significant price momentum with a four-week price change of 64.4%, indicating strong investor interest [4] - The stock has gained 8.9% over the past 12 weeks and has a beta of 1.61, suggesting it moves 61% more than the market [5] - HFFG has a Momentum Score of A, indicating a favorable time to invest [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [7] - HFFG is trading at a low Price-to-Sales ratio of 0.16, meaning investors pay only 16 cents for each dollar of sales, indicating a reasonable valuation [7] Group 3: Additional Investment Opportunities - Besides HFFG, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - Various Zacks Premium Screens are available to help identify winning stock picks based on different investing styles [9]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, in ...