HF Foods Group (HFFG) investor relations material

Industry performance and market trends

• 2025 saw industry-wide restaurant traffic pressure, but Asian specialty concepts maintained single-digit revenue growth and nearly 7% EBITDA growth.

• Independent restaurants generally command higher margins than chains, prompting a shift in focus by larger distributors.

• Early 2025 brought policy changes and tariff impacts, but normalization followed, with 2026 expected to bring low- to mid-single-digit growth.

Strategic investments and expansion

• Major investments in 2025 included doubling ambient space in the Southeast and planning cold storage expansion, unlocking cross-selling opportunities.

• Midwest expansion will follow, leveraging existing cold storage and targeting ambient product growth, with $200–$300 million organic growth potential over several years.

• Marketing efforts are being launched for the first time to support new capacity and broaden reach to Asian groceries and adjacent ethnic groups.

M&A and competitive positioning

• M&A pipeline has grown, with more attractive valuations and inbound interest from targets; discipline remains in acquisition selection.

• National footprint and deep cultural understanding provide a competitive moat against both larger and smaller rivals.

• Margin expansion is expected through synergies with acquired businesses, supporting growth from $1.2 billion to potentially $2 billion.