Thai Union Group has declared its plan to divest its minority stake in Red Lobster.

Thai Union Group PCL ("the Group") has announced plans to divest its minority stake in Red Lobster, marking a strategic shift towards concentrating on its main business sectors. Since becoming a strategic partner and minority shareholder in Red Lobster in 2016, Thai Union has faced challenges, including the Covid-19 pandemic, persistent industry difficulties, increased interest rates, and rising costs for materials and labor, all of which have adversely affected Red Lobster's financial performance. Thiraphong Chansiri, CEO of Thai Union Group, stated that the ongoing financial demands of Red Lobster no longer match the company's capital allocation strategy, prompting the decision to exit the investment. The Group will recognize a one-time estimated non-cash impairment charge of THB 18.5 billion (approximately USD 530 million) related to its investment in Red Lobster in its fourth-quarter 2023 earnings. Despite this, Thai Union's financial health remains robust, evidenced by a low net debt/equity ratio of 0.84. Demonstrating confidence in its financial stability, the Board has authorized a share buyback program of up to THB 3.6 billion or 200 million shares. Thai Union continues to see improvements in profitability and gross profit margins across its core business segments. The company is finalizing its Corporate Strategy 2030, which will emphasize Ambient Seafood, Frozen, and PetCare sectors, aiming to enhance profitability and shareholder value over the long term. For further details, an analyst update on the Red Lobster investment is available via a provided link. About Thai Union: For 46 years, Thai Union Group PCL has been a leading global seafood provider, committed to delivering high-quality, healthy, and innovative seafood products worldwide. With annual sales surpassing THB 155.6 billion (US$ 4.4 billion) and a global workforce of over 44,000, Thai Union is a major player in the seafood industry, known for its extensive brand portfolio and commitment to sustainability. The company's dedication to "Healthy Living, Healthy Oceans" is reflected in its active participation in global sustainability initiatives and its comprehensive sustainability strategy, SeaChange® 2030. Thai Union's efforts in sustainability have been recognized globally, including its continuous listing on the Dow Jones Sustainability Indices and top rankings in the Seafood Stewardship Index and other prestigious indices. More information on Thai Union's sustainability efforts can be found at seachangesustainability.org.