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Unilever chief executive Hein Schumacher will leave next month after less than two years in the top job, the consumer goods giant has revealed. The Marmite-to-Dove soap group said Mr Schumacher will leave the role “by mutual agreement” on March 1.
He will be replaced by recently appointed chief financial officer Fernando Fernandez, who was president of beauty and wellbeing before taking on the top finance role in the firm in January 2024.
Unilever, which makes well-known household brands such as Hellman’s and Magnum, has kicked off a search for a new chief financial officer.
Shares in FTSE 100 listed Unilever fell 3 per cent in early trading on Tuesday after it announced the unexpected changeover at the top, though clawed back some of that ground to sit around two per cent down for the day by 9am GMT.
Unilever is the London Stock Exchange’s fourth-biggest company by market cap, behind only AstraZeneca, Shell and HSBC.
Chris Beckett, head of equity research at Quilter Cheviot said: “Losing a chief executive after 18 months is never a good thing. For Unilever, especially during a strategy turnaround, it does not suggest things were going well behind the scenes or the business was firing on all cylinders. The last set of results suggested that turnaround had stalled somewhat, with weak guidance and sales growth only likely to improve as the company passes on higher commodity costs.
“Evidence of quick operational improvements are needed when you are embarking on a new strategy, and with new management. The change at the top of Unilever will not see a change in that strategy, which is positive, and guidance has been reiterated. However, the new CEO, current chief financial officer Fernando Fernandez, will have been pivotal in agreeing and implementing that strategy and ultimately is the best the company could do for now.
“Unilever has a long way to go on its road to recovery. The share price offers a bit of headroom to do that, but events such as this will not go down well with investors. Results will be watched even more closely now to ensure there are no signs of cracks within that turnaround strategy.”
Mr Schumacher’s sudden departure comes mid-way through a major turnaround plan, which involves 7,500 previously announced job cuts, as well as moves to trim down the number of brands in its food division and focus more attention on its biggest sellers.
The outgoing boss – who became chief executive officer in July 2023 – has also led efforts to offload its Ben & Jerry’s and Wall’s ice cream division, announcing plans earlier this month to spin it off with a stock market listing in Amsterdam, alongside additional listings in London and New York.
But Unilever has faced increasing pressure from shareholders – such as activist investor Nelson Peltz – over a flagging performance.
Shares fell after a poorly received set of annual results earlier this month.
Unilever chairman Ian Meakins said: “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.”
Mr Schumacher said it had 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,” he added.
He was appointed chief executive in 2023 to replace former boss Alan Jope, when he retired.
Mr Schumacher was previously chief executive of the global dairy and nutrition business, Royal FrieslandCampina, and became a non-executive director of Unilever in October 2022.
While he steps down from the top job next month, he will leave the group on May 31.
On Mr Fernandez’s appointment, Mr Meakins said: “The board has been impressed with Fernando’s decisive and results-oriented approach and his ability to drive change at speed.”
