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Unilever CEO Hein Schumacher to Depart After Short Tenure
Unilever Plc has announced that CEO Hein Schumacher will be stepping down after a brief stint of less than two years, with the company’s Chief Financial Officer, Fernando Fernandez, appointed to succeed him. The transition will take effect in March 2025, with Schumacher remaining in his role until May 31.
Schumacher took over leadership in July 2023, tasked with significant reforms within the multinational consumer goods company. His departure is described as a mutual agreement, and Unilever asserts that this change will not affect its outlook for 2025 or its medium-term forecasts.
According to reports, Unilever’s shares experienced a decrease of approximately 1.6% shortly after the announcement was made.
In a statement, Unilever Chairman Ian Meakins expressed gratitude towards Schumacher for his contributions, noting that he had successfully reset the company’s strategic direction and instilled focus and discipline, which resulted in notable financial progress over the past year.
Meakins further stated, “While the Board is pleased with Unilever’s performance in 2024, there is much further to go to deliver best-in-class results. Having worked closely with Fernando over the last 14 months, the Board is very confident in his ability to lead a high-performing management team and realize the benefits of the Growth Action Plan with urgency.”
As a result of the leadership transition, Srinivas Phatak, currently serving as deputy CFO and group controller, will fill the interim CFO role while a search for a permanent replacement is conducted.
Diana Radu, an equity analyst at Morningstar, described Schumacher’s departure as “unexpected,” given Unilever’s recent strong performance relative to its competitors in the consumer goods sector. “There’s nothing in the company’s recent performance to warrant such a move. In fact, Unilever has delivered a strong 18-month period under his leadership, marked by greater focus and disciplined execution,” Radu stated.
Unilever has not offered additional details about the decision when contacted for comment on the matter. Earlier this month, the company reported slightly lower-than-expected sales growth and highlighted a subdued start to 2025, although it expressed optimism for recovery in the latter half of the year.
In its fourth quarter, Unilever reported a 4% increase in underlying sales, which fell short of the 4.1% forecast based on company estimates. Additionally, the full-year underlying sales growth of 4.2% was slightly below the analyst consensus of 4.3%, primarily driven by a 2.9% volume increase. Underlying operating margins were reported at 18.4%, aligning closely with the estimated 18.3%.
In a separate development, Unilever announced plans to demerge its ice cream division, which includes popular brands such as Ben & Jerry’s and Magnum. The new entity is set to be listed on the Amsterdam, London, and New York stock exchanges—the same markets where Unilever is currently traded—with an anticipated completion by the end of 2025.
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