25 Feb 2025 Unilever CEO in surprise exit

Unilever has surprised the FMCG world by ousting relatively new CEO Hein Schumacher ….

CEO Hein Schumacher is stepping down after less than two years in charge. Finance boss Fernando Fernandez will take over as CEO on March 1, 2025, and will take over the tough task of reviving the consumer group’s performance.

Schumacher’s sudden departure after less than two years in the job hit Unilever’s shares, which fell as much as 3.4% on the news. They had gained more than 9% since Schumacher took the helm.

Unilever, which has given no specific reasons for the change, is facing pressure from investors to revitalise its fortunes and the top management upheaval comes just weeks after Unilever announced underwhelming full-year earnings.

The consumer goods industry has had a difficult few years coping with a supply chain crunch triggered by the COVID-19 pandemic, plus sky-high commodities prices and an energy crisis after Russia invaded Ukraine. Its valuation has also been affected by market growth slowdown and competition from cheaper brands.
Big surprise – or not?

Big surprise – or not?

“We are gobsmacked at the news that Unilever’s very highly regarded CEO Hein Schumacher is to step down after a very successful 18 months in charge,” RBC Capital analyst James Edwardes Jones said in a note.

When Schumacher became CEO, analysts and investors had applauded Unilever’s decision to choose an external candidate as CEO.

“It has to be something to do with his style of managing the company. We felt that the job needed an outsider, but maybe this was not the view of a meaningful proportion of Unilever’s employees,” Jones said.

Under Schumacher, Unilever shifted away from environmental, social, and governance (ESG) goals, prioritised by previous incumbents, and focused on cost-cutting and putting marketing spend on 30 “power brands” such as Comfort fabric softener, Hellmann’s mayonnaise, and Knorr stock cubes.

It also included separating its ice cream division and cutting thousands of jobs.

Fernandez may revisit a mega-merger and acquisition similar to Unilever’s attempted purchase of Haleon (maker of Advil) in 2022, preferring fast-growing, high-margin businesses in the beauty and healthcare sectors.

Source: Yahoo.com, Reuters, just-food.com