Unilever CEO Schumacher Steps Down: A New Era Begins

Unilever, the multinational consumer goods company, has announced that its CEO, Hein Schumacher, will step down from his position on March 1, 2025, by mutual agreement. He will leave the company on May 31, 2025. Fernando Fernandez, the current Chief Financial Officer and Executive Director, will succeed Schumacher as the new CEO, effective from March 1, 2025. This leadership change comes after less than two years of Schumacher's tenure as the CEO of Unilever.

During his time at Unilever, Schumacher implemented several strategic shifts aimed at transforming the company into a higher growth, simpler business. Some of the key strategic changes he implemented include:

1. Portfolio review and realignment: Schumacher conducted a comprehensive portfolio review in early 2024, leading to the decision to divest certain non-core brands like Dollar Shave Club. This move allowed Unilever to focus on scaling fewer but stronger brands that aligned with market trends and had better growth potential.
2. Cost-cutting and productivity program: Schumacher introduced a significant productivity program to improve operational efficiency and reduce costs. This initiative was fully on track, as acknowledged by Unilever Chairman Ian Meakins.
3. Ice cream business separation: Schumacher led the commencement of the Ice Cream business separation, which is set to be completed by the end of 2025. This strategic move aims to create a more focused and agile business.
4. Growth Action Plan (GAP): Schumacher implemented a Growth Action Plan (GAP) to put Unilever on a path to higher performance. The board is committed to accelerating its execution.

These strategic shifts have had a positive impact on Unilever's performance and market position. Under Schumacher's leadership, the company delivered solid financial progress during 2024, with underlying sales growth of 4.2% and a 10.8% drop in net profit to 6.4 billion euros. Despite the decline in profit, the company attributed this to a loss on disposals and higher restructuring costs, indicating that the strategic changes were on track. Unilever's shares have also performed well, up 11% over the past 12 months entering February 25, 2025.

Fernando Fernandez's appointment as the new CEO aligns with Unilever's current strategic objectives in several ways. Meakins stated that the Board is committed to accelerating the execution of the GAP, and Fernandez, having partnered in the development of the GAP and driven the productivity program, is well-positioned to lead the acceleration of this plan. He has demonstrated his ability to drive change at speed, which is crucial for achieving Unilever's strategic objectives. Fernandez's strong track record of performance and portfolio management, along with his love of brands and profound knowledge of Unilever's operations, make him an ideal candidate to drive shareholder value.

In conclusion, the leadership change from Hein Schumacher to Fernando Fernandez is unlikely to significantly impact Unilever's ongoing initiatives, such as the ice cream business separation and the Growth Action Plan (GAP). The board's confidence in Fernandez's ability to lead a high-performing management team and deliver shareholder value further supports the continuity of Unilever's strategic goals. As Unilever moves forward with its new CEO, investors and stakeholders can expect the company to continue its focus on growth, innovation, and operational excellence.