Unilever announced today, after less than two years at the helm, CEO Hein Schumacher is stepping down from his role, effective March 1, 2025. This unexpected development follows the company's board meeting and will see the appointment of CFO Fernando Fernandez as Schumacher's successor. Unilever shared this news as part of its strategy to continue promoting strong growth and operational effectiveness.
Schumacher’s departure will officially take place by mutual agreement announced by Unilever’s chair, Ian Meakins, who expressed gratitude for the progress the company made under Schumacher’s leadership. "He reset Unilever’s strategy and introduced significant productivity improvements," Meakins stated. He emphasized Schumacher’s focus on stronger financial results and the completion of plans for separating the ice cream division, which had previously faced delays.
During his tenure, Schumacher was instrumental in realigning Unilever’s corporate strategy aimed at addressing years of underperformance, characterizing his leadership with the mantra: "We committed to doing fewer things, but with greater impact." He had previously joined Unilever from Royal FrieslandCampina and quickly recognized the need to adapt the company’s offerings to align with market demands.
Under Schumacher’s guidance since July 2023, Unilever initiated significant reforms, working toward becoming more streamlined and efficient. His strategies included the demerger of its ice cream business, which is expected to be finalized by the end of 2025, underlining his commitment to increasing Unilever’s profitability by divesting assets no longer aligned with the company’s growth agenda.
Despite the turmoil of leadership changes, Unilever assured stakeholders there would be no impacts on its 2025 outlook or medium-term guidance, signaling confidence in its operational strategies moving forward. Meakins remarked, "While the board is pleased with Unilever’s performance, there is much more to accomplish to achieve best-in-class results.”
Taking over the helm will be Fernando Fernandez, whose extensive background includes executive roles across Unilever's beauty and wellbeing segment, as well as leading operations within Latin America and the Philippines. Since joining as CFO just over one year ago, he has been recognized for his decisive and results-driven mindset, making him the board’s choice for this pivotal shift. Meakins remarked on Fernandez’s notable track record, stressing his capability to drive change quickly and effectively.
Fernandez, previously President of Beauty & Wellbeing, stated, “Being appointed as CEO of Unilever is an honor. Our focus will be on building a future-fit portfolio with attractive growth and delivering unmatched functional and perceivable superiority across our top 30 power brands.” His appointment is viewed as the board's intent to maintain continuity and operational stability during transition.
With declining profit margins reported earlier this year, Unilever faces the task of enhancing operational efficiencies and driving shareholder value. The company's total turnover reported rose by 1.9% to 60.8 billion euros for the year 2024, with underlying sales growth at 4.2%. Nonetheless, they experienced a significant net profit drop of 10.8%, reflecting the costs incurred from restructuring efforts.
The board appears committed to Schumacher’s initiated Growth Action Plan (GAP), which outlines several core strategies set to boost long-term performance and restore Unilever’s competitive edge against rivals. Meakins commented on the need to accelerate GAP’s execution, emphasizing the board's full support as they navigate through this leadership change.
Looking forward, Unilever's chairman expressed confidence not only in Fernandez's abilities but also with the processes set to appoint a permanent CFO to assist during this transition phase. "With the right leadership team, we're well-positioned to embrace future challenges and deliver value to our shareholders consistently,” Meakins concluded.
The change at the top level of Unilever is not merely about leadership but also reflects broader industry trends where consumer goods firms are adapting quickly to meet changing consumer preferences and economic pressures. The shift points to both challenges and prospects for Unilever as they reshape their business narrative following Schumacher's short yet impactful term.