HF Foods Group Q1 Revenue Rises 4.5% to $312M; Gross Profit $50.5M
HF Foods Group posted Q1 net revenue of $312 million, up 4.5% year-over-year, while gross profit slipped to $50.5 million on higher seafood mix and landed costs. ERP implementation and new facilities in Chicago, Charlotte and Atlanta are complete, but management warns of margin pressure from rising fuel costs.
1. Q1 Financial Performance
In Q1 2026 HF Foods Group recorded net revenue of $312 million, a 4.5% increase year-over-year, while gross profit declined slightly to $50.5 million due to a higher proportion of seafood sales and elevated landed costs.
2. Operational Transformations and Expansion
The company completed a comprehensive ERP system implementation, consolidated its sales organization and opened new distribution centers in Chicago, Charlotte and Atlanta to enhance cross-selling capabilities and support volume growth.
3. Outlook and Risks
Management cautions that rising fuel costs and other input expenses will pressure margins in the near term, but remains confident in long-term growth prospects driven by the expanded footprint and growing inbound M&A interest among smaller competitors.