London (AFP) – British consumer goods giant Unilever on Tuesday said chief executive Hein Schumacher will step down on March 1 after less than two years in the post. The company said in a statement that Schumacher was leaving by “mutual agreement” and would be replaced by finance chief Fernando Fernandez. The announcement comes shortly after the group, whose brands include Ben & Jerry’s ice cream and Dove soap, reported a slump in profits for 2024.
“While the board is pleased with Unilever’s performance in 2024, there is much further to go to deliver best-in-class results,” Unilever chairman Ian Meakins said in the statement. Following the announcement, Unilever shares slipped around two percent in early trading on London’s top-tier FTSE 100 index, which was trading higher overall.
Schumacher took over the position in 2023 from Alan Jope, who came under fierce criticism from activist investors over a failed takeover bid. In a bid to revive growth, Schumacher launched a shakeup including axing thousands of jobs and plans to spin off the group’s ice cream business. But during his time at the helm, he has faced two sets of disappointing annual results, with performance hit last year by the group’s exit from Russia and other restructuring costs.
The new strategy has “put Unilever on a path to higher performance and the board is committed to accelerating its execution,” Meakins added. He praised Fernandez’s “decisive and results-oriented approach and his ability to drive change at speed.” Unilever has faced increasing pressure from shareholders, including activist investor Nelson Peltz, to improve flagging performance.
“Unilever’s CEO is stepping down in a surprise twist, cutting short his tenure just as he was steering the consumer goods giant toward a leaner, more profitable future,” said Matt Britzman, senior equity analyst at stockbroker Hargreaves Lansdown. “With Fernandez poised to build on the groundwork already laid, this unexpected transition might be the spark that helps deliver a new version of Unilever that investors have long been waiting for,” he added.
Fernandez, who has been at the company for almost 40 years, will become CEO after a little over a year as chief financial officer. He will take over the group’s overhaul plans, which also include Unilever focusing on its 30 highest performing brands that make up 70 percent of the group’s revenue. The company said its guidance for 2025 remains unchanged from its 2024 earnings statement that forecast only subdued market growth in the near term.
© 2024 AFP
