HF Foods Group (HFFG) investor relations material

Market position and growth strategy

• Holds over 16% market share in the $50 billion Asian specialty food service market, serving 15,000 accounts nationwide with 95% U.S. coverage.

• Focuses on independent restaurants, differentiating from larger broadline distributors by targeting smaller, regionally fragmented competitors.

• Strategic rebranding to emphasize specialty foods, with plans to expand beyond Asian cuisine into other ethnic and specialty categories, including Hispanic and frozen seafood.

• Organic growth driven by cross-selling, new account acquisition, and increased wallet share, with a multi-pronged approach to market expansion.

• Specialty grocery and e-commerce channels are expected to become significant revenue streams, potentially growing from less than 5% to 10–20% of the business mix in coming years.

Capacity investments and operational enhancements

• Recently launched a 200,000 sq ft facility in Atlanta, with a year-long ramp-up expected, and plans to expand capacity in the Midwest.

• Capacity constraints have been the main growth limiter, not market demand; new investments aim to unlock $700 million in organic growth opportunities.

• All sites will be on a unified ERP system by May 2025, improving data visibility and operational efficiency.

• Sales force restructuring on the East Coast and Southeast to support a more aggressive growth strategy.

• Owns 10 of 14 distribution facilities and most of a 400-truck fleet, with over 1 million sq ft of cold storage, making asset replication costly for competitors.

M&A and expansion outlook

• M&A remains a core pillar, targeting smaller competitors for both in-market and new geographic expansion.

• Recent acquisitions in frozen seafood have been transformational, growing that segment from $100 million to over $400 million.

• 2026 is positioned as a year for both organic and inorganic growth, leveraging scale and integration to evaluate new deals.

• Long-term goal is to scale from $1.2 billion to potentially $2–5 billion in revenue, with M&A as a significant driver.