Unilever today unexpectedly announced that Hein Schumacher is stepping down as CEO “by mutual agreement,” to be replaced by CFO Fernando Fernandez, who’s also executive director. Apparently Schumacher wasn’t turning around the company as quickly as some would like.
Schumacher will step down on March 1 and will leave the company on May 31. He’s had the job since July of 2023, having been appointed at a time when the board was under pressure by activist investor Nelson Peltz. Schumacher at the time apparently was approved by Peltz’s investment fund. There was no mention of Peltz’s involvement in any early news reports today.
Unilever announced mixed 2024 results on Feb. 13. Sales increased 1.9% to nearly 61 billion euros, the only underperformer being personal care. Operating profit dipped 3.7% and net profit dropped 10.8% to 6.4 billion euros. Overall volume grew 2.9%.
Prior to becoming CFO in January 2024, Fernandez had a successful tenure as president of Beauty & Wellbeing, one of Unilever’s fastest growing businesses, today’s announcement said. In previous roles as president of Latin America, CEO of Brazil and CEO of Philippines, he led some of the company’s best performing markets, delivering strong financial results while developing exceptional talent.
Unilever Chairman Ian Meakins thanked Schumacher “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.”
The company has been shedding some nonessential and underperforming assets and plans to spin off its ice cream business in its entirety sometime this year.
