Unilever has announced plans to cut a further €1bn in costs by the end of 2029, following the separation of its food business. The consumer goods giant aims to reduce "stranded costs" from the spin-off and simplify its operations through technology and process redesign. The company will detail its strategy at an investor day on Wednesday.
This follows the board's replacement of former CEO Hein Schumacher with CFO Fernando Fernandez, who oversaw a $66bn deal to combine the food division with McCormick. Activist investor Nelson Peltz had long advocated for a breakup. Fernandez is focusing on a "sharper, more focused" group centered on beauty, personal care, and home care.
Unilever will prioritize faster-growing beauty and wellness brands in markets like India and the US, operating under a "global strategy, local execution" model. The new target comes after hitting its previous goal of €800mn in annual savings by 2026. The company expects 2027 results to align with medium-term targets of 4-6% underlying sales growth and at least 2% volume growth.
Analysts at RBC Capital Markets noted the targets are challenging but largely expected.
Source: Financial Times Companies · Summarized by HeadlinesBriefing