HF Foods (US:HFFG)2024-08-06 20:05Revenue Performance - Net revenue for Q2 2024 increased by 3.4% to $302.3 million compared to $292.3 million in the prior year[1]. - For the first six months of 2024, net revenue increased by 2.0% to $598.0 million compared to $586.2 million in the prior year[2][7]. - Net revenue for Q2 2024 was $302,342, an increase of 3.5% compared to $292,312 in Q2 2023[17]. Profitability - Gross profit for Q2 2024 rose by 3.6% to $52.5 million, with a gross profit margin of 17.4%, up from 17.3% in the prior year[1][4]. - Gross profit for the first six months of 2024 was $102.9 million, a 2.0% increase from $100.8 million in the prior year, with a flat gross profit margin of 17.2%[2][7]. - Gross profit for the six months ended June 30, 2024, was $102,876, up from $100,838 in the same period of 2023, reflecting a growth of 2.0%[17]. - Adjusted EBITDA for Q2 2024 increased by 26.4% to $10.6 million, compared to $8.4 million in the prior year[1][6]. - EBITDA for the six months ended June 30, 2024, was $20,313, significantly higher than $9,470 in the same period of 2023, representing an increase of 114.5%[20]. - Adjusted EBITDA for Q2 2024 was $10,561, compared to $8,357 in Q2 2023, marking a growth of 26.3%[19]. Net Income - Net income improved to $0.2 million in Q2 2024, compared to a net loss of $1.6 million in the prior year[1][5]. - Net income attributable to HF Foods Group Inc. for Q2 2024 was $17, a recovery from a loss of $850 in Q2 2023[21]. - Non-GAAP net income attributable to HF Foods Group Inc. for the six months ended June 30, 2024, was $4,632, compared to $3,248 in the same period of 2023, an increase of 42.5%[22]. Expenses - Distribution, selling, and administrative expenses decreased by $4.8 million to $100.3 million for the first six months of 2024[8]. - Distribution, selling, and administrative expenses decreased to $49,840 in Q2 2024 from $52,243 in Q2 2023, a reduction of 4.8%[17]. - Interest expense increased to $5,953 for the six months ended June 30, 2024, from $5,715 in the same period of 2023, reflecting a rise of 4.2%[20]. Cash Flow and Liquidity - Cash flow from operating activities decreased to $0.0 million for the first six months of 2024, down from $8.7 million in the prior year[10]. - The company reported a net cash used in operating activities of $17 for the six months ended June 30, 2024, compared to $8,732 provided in the same period of 2023[18]. - As of June 30, 2024, the company had a cash balance of $14.0 million and access to approximately $29.9 million through its line of credit[10]. - Cash at the end of the period was $13,968, a decrease from $14,946 at the end of the same period in 2023[18]. Operational Improvements - The company is implementing a modern ERP solution across its distribution centers, with completion expected by the end of the year[3].