Tubs of Ben & Jerry’s ice cream in a store freezer.
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Unilever CEO Hein Schumacher is stepping down after less than two years in the job, the company said Tuesday, with current CFO Fernando Fernandez set to take his place leading the company.
Schumacher — who took the reins in July 2023 and was tasked with leading the overhaul of the consumer goods giant — will stand down as CEO and board director in March and will leave the company on May 31. His departure is taking place by mutual agreement, the consumer goods firm said.
Fernandez’ new role will take effect on March 1.
Unilever said there was no change to its 2025 outlook or the company’s medium-term guidance following this announcement.
Shares were down around 1.6% by 12:29 p.m. in London.
“On behalf of the Board, I would like to thank Hein for resetting Unilever’s strategy, for the focus and discipline he has brought to the company and for the solid financial progress delivered during 2024,” Unilever Chairman Ian Meakins said in a statement.
“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 with Fernando closely over the last 14months, the Board is very confident in his ability to lead a high performing management team, realize the benefits of the GAP [Growth Action Plan] with urgency, and deliver the shareholder value that the company’s potential demands,” Meakins added.
Srinivas Phatak, Unilever’s current deputy CFO and group controller, will take over as interim CFO. An internal and external search now being initiated to permanently fill the role, the company added.
Diana Radu, equity analyst at Morningstar, said the announcement was “unexpected,” especially given the firm’s recent outperformance versus peers in the consumer goods space.
“There’s nothing in the company’s recent performance to warrant such a move,” she said. “In fact, Unilever has delivered a strong 18-month period under his leadership, marked by greater focus and disciplined execution.”
Unilever did not provide further comment on the decision when contacted by CNBC.
The consumer good giant earlier this month posted slightly weaker-than-expected sales growth and pointed to a subdued start to 2025, though it said it expected that to reverse in the second half of the year.
The maker of Dove soap and Hellmann’s mayonnaise posted a 4% rise in fourth-quarter underlying sales, slightly missing the 4.1% rise forecast in a company-compiled estimate.
Full-year underlying sales grew 4.2% versus a company-compiled analyst consensus of 4.3%. That was led by 2.9% volume growth. Underlying operating margins came in at 18.4% versus 18.3% estimated. Both figures were in line with the company’s full-year forecasts.
The company also said that its ice cream unit, which houses brands including Ben and Jerry’s and Magnum, would be separated via a demerger. It said the unit would be listed in Amsterdam, London and New York — the same three exchanges on which Unilever shares are currently traded — and that it was on track to complete by the end of 2025.