Unilever surprised investors on Tuesday by announcing the departure of Chief Executive Officer Hein Schumacher, less than two years after he took the helm.
Schumacher, who assumed the top role in July 2023, will step down as CEO and board director next month and leave the company entirely on 31 May. The company described his departure as a mutual decision.
Finance chief Fernando Fernandez will step in as the new CEO, effective 1 March.
Despite the leadership change, Unilever reaffirmed its 2025 outlook and medium-term guidance.
Unilever’s chairman, Ian Meakins, praised Fernandez’s "decisive and results-oriented approach", stating that the board had tasked him with executing the company’s growth strategy.
Schumacher expressed pride in his tenure, stating: “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.”
Unilever has faced mounting pressure from investors to improve performance following years of sluggish growth. The company has been grappling with supply chain disruptions, soaring commodity prices, and a cost-of-living crisis that has pushed consumers toward cheaper alternatives.
Under Schumacher, Unilever initiated a strategic reset, including cost-cutting measures, a planned separation of its ice cream division, and job reductions. However, the company has struggled to exit certain categories, such as plant-based meat, as part of its portfolio restructuring.
Schumacher’s initial appointment was well-received by investors, including activist investor Nelson Peltz, who took a stake in Unilever in 2022 and sits on the company’s board. His departure raises fresh questions about the company’s strategic direction and ability to accelerate growth.
At the time of writing, Unilever (LON: ULVR) stock was trading at £4,426, down 1.3% from Monday's close of £4,483. The stock reached a day low of £4,329 and a day high of £4,427. Unilever's market cap stands at £113.01 billion (A$225.569 billion).
