HF Foods Group Powers Through 2025 Headwinds with Strong Earnings Performance
HF Foods Group, a leading distributor of food products in the United States, has reported a robust performance in its fourth quarter earnings for 2025, despite headwinds faced by the broader food service industry.
According to Felix Lin, President and Chief Executive Officer of HF Foods Group, the company drove meaningful continuous momentum for its business, with net revenue increasing 2.2% year-over-year to $1.23 billion and gross profit increasing 1.2% to $207.6 million. Notably, adjusted EBITDA increased 6.9% year-over-year.
Lin highlighted the company's progress on its long-term transformation plan, which includes sales operations, digital infrastructure, and facilities upgrades. Specifically, he noted that the consolidation of two sales call center operations into one as of late December 2025 has provided better control over the overall sales process and improved customer service while maintaining a distinct connection with customers.
The implementation of a new Enterprise Resource Planning (ERP) system across all distribution centers enables the company to achieve higher levels of purchasing and operational efficiencies. This includes re-categorizing many SKUs, which drives some variability in year-over-year sales by category. The company expects clean comparisons once the ERP implementation is fully lapped in the second half of 2026.
On facilities upgrades, Lin announced that the renovation of the Charlotte location is largely complete with final permits imminent. The new facility is expected to be operational in Q2 2026 and will shorten seafood distribution routes in the Southeast. Phase one construction of a new state-of-the-art Atlanta DC has been completed, becoming operational in January 2026.
The company plans to kick off phase two cold storage capacity expansion in Atlanta to launch in the second half of 2026. Once complete, the cold storage capacity in the Atlanta market will have almost doubled, expanding from 10,000 sq ft to 20,000 sq ft. This represents a significant milestone in the company's ongoing transformation plan.
HF Foods Group has also announced strategic acquisitions and investments to drive growth and optimize its distribution network. These moves reflect the company's commitment to sustainable growth and expansion into new markets. As such, between Southeast and Midwest regions, there exists several hundred million dollars' worth of organic growth opportunity as the company continues to invest and expand capacity.
Paul McGarry, Chief Financial Officer, added that acquiring a Chicago warehouse in September has advanced HF Foods' ongoing transformation plan to improve operational efficiency, reduce costs, and strengthen organic growth through cross-selling opportunities. He noted that this strategic acquisition enables the company to exit an early lease agreement, improve operating expense, and invest to grow additional capacity.
