Unilever has announced Hein Schumacher will step down as CEO within days, just 18 months after he joined the consumer goods giant from FrieslandCampina.
In a statement to the London Stock Exchange today (25 February), Unilever said Schumacher will relinquish the CEO role on 1 March and will officially leave the Hellmann’s mayonnaise owner on 31 May.
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Current finance chief Fernando Fernandez will step into the CEO seat from the 1 March. He was only promoted to CFO in January 2024 after heading up Unilever’s beauty and wellness division.
While an internal and external search for a replacement CFO is initiated, Srinivas Phatak, Unilever’s deputy chief financial officer, will takeover from Fernandez.
Schumacher is leaving the Knorr brand maker after putting in place a Growth Action Plan (GAP), alongside a productivity programme to realise €800m ($838.2m) in cost savings, which, while still ongoing, have come at the expense of thousands of jobs.
The outgoing Unilever CEO has also overseen the planned demerger of the ice-cream business, which is slated to be spun-off by the year-end with a trio of listings in London, Amsterdam and New York.
He has also made a number of brand disposals to simplify Unilever’s operational structure, mainly with the divestment of some Dutch product lines, along with potentially selling The Vegetarian Butcher meat-free business.
Commenting on Schumacher’s departure, Unilever chairman Ian Meakins said: “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.
“Hein introduced and led a significant productivity programme and the commencement of the ice-cream separation, both of which are fully on track.
“The Growth Action Plan (GAP) has put Unilever on a path to higher performance and the board is committed to accelerating its execution.”
Meakins added with respect to Fernandez’s appointment: “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 14 months, the board is very confident in his ability to lead a high-performing management team, realise the benefits of the GAP with urgency, and deliver the shareholder value that the company’s potential demands.”
Unilever’s shares have so far showed a relatively muted reaction to the executive changes. They were down 1.5% at 4,414 pence as of 11:11am BST in London today.
Less than two weeks ago, Unilever reported its financial results for the 2024 fiscal year and at the same time confirmed the listings for ice cream.
While the results were generally positive, Unilever indicated its underlying sales growth (USG) in the new financial year is likely to slow in the early part of 2025 before picking up sequentially, with inflation-linked pricing to play a part.
The company reported a USG print of 4.2% in 2024, while underlying volumes increased by 2.9%. There was also further progression in the gross margin.
Unilever, meanwhile, reaffirmed its financial outlook for 2025 and its medium-term guidance today. USG is expected within the 3-5% range in the new year, while the mid-term outlook is 4-6%.
Meakins added: “The board has been impressed with Fernando’s decisive and results-oriented approach and his ability to drive change at speed. He partnered in the development of the GAP and in driving the productivity programme. He has a strong track record of performance and portfolio management, a love of brands and a profound knowledge of Unilever’s operations.”
Schumacher said: “It has been a privilege to lead Unilever. We have made real progress and I am proud of what we have achieved in a short period of time.
“With a clear strategy, a portfolio reset in motion and a strong leadership team in place, I look forward to seeing Unilever move from strength to strength in the future.”
