HF Foods Shares Are Up Today: What's Going On?

HF Foods Group Inc. (NASDAQ:HFFG) shares are trading higher Friday after the company reported better-than-expected fourth-quarter financial results.

What To Know: The company reported fourth-quarter net revenue of $305.3 million, an 8.7% increase from $280.9 million in the prior-year period. The growth was driven by volume increases from new wholesale accounts, rising case counts, product cost inflation and improved pricing in specific categories.

However, gross profit declined slightly to $52.2 million from $52.3 million, with gross profit margin falling to 17.1% from 18.6%, due to compressed margins on meat and poultry and an increased mix of lower-margin wholesale business.

CEO Felix Lin acknowledged ongoing pressures on key customer segments due to policy changes and broader industry headwinds but emphasized the company's adaptability and commitment to expanding into high-growth areas. Despite current challenges, HF Foods aims to leverage its flexible business model and supplier relationships to maintain a competitive position in the evolving market.

HFFG Price Action: HF Foods shares were up 36.5% at $2.32 at the time of writing, according to Benzinga Pro.

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