Unilever boss quits as company struggles to move on from ‘social purpose'
The boss of Marmite maker Unilever is to quit as the business struggles after toning down its 'social purpose' mission that championed progressive causes.
Hein Schumacher will leave next month after less than two years as chief executive, and will be replaced by Fernando Fernandez, the recently appointed chief financial officer.
It comes as Unilever attempts to reinvent itself following a decision to row back on its social purpose mission shortly after Mr Schumacher took charge.
Before 2023, the company had attempted to promote environmentalism and equality by giving every brand a social purpose, a move mocked by investors for attempting to imbue the likes of Hellmann's mayonnaise with a reforming agenda.
Mr Schumacher swiftly announced a major overhaul dubbed the Growth Action Plan (GAP), under which its efforts to transform the world are more tightly focused. However, he has been unable to significantly boost a share price that has been largely stagnant since 2017.
Ian Meakins, the Unilever chairman, said: 'While the board is pleased with Unilever's performance in 2024, there is much further to go to deliver best-in-class results.'
He added: '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 GAP has put Unilever on a path to higher performance and the board is committed to accelerating its execution.'
Mr Schumacher's departure, which the board said was by mutual agreement, was announced days after the consumer goods giant snubbed London in favour of Amsterdam for its €15bn (£12.5bn) spin-out of its Magnum business.
It sent shares more than 2pc lower on Tuesday to make Unilever the worst performer on the FTSE 100 and comes as the business seeks to deliver 7,500 previously announced job cuts.
Unilever said earlier this month that its ice cream business, which is being spun off with an expected value of between €10bn and €15bn, would have secondary listings in New York and London, but its primary stock market listing in Amsterdam.
The decision was a blow to the London Stock Exchange and Rachel Reeves, the Chancellor, who met with Unilever officials last September to discuss 'investment in the UK and capital markets and reforms'.
The company, which makes a range of consumer goods from Marmite to Dove, is also trimming down the number of brands in its food division and focusing more attention on its biggest sellers.
Incoming boss Mr Fernandez was president of beauty and wellbeing before taking on the top finance role in January 2024.
The company has kicked off a search for a new chief financial officer.
Mr Meakens said the board had been 'impressed with Fernando's decisive and results-oriented approach and his ability to drive change at speed'.
Mr Schumacher had laid out cost cuts at the company last year, including separating the ice cream division and cutting thousands of jobs to address years of underperformance.
The ice cream business – which includes the Magnum and Wall's brands – generated turnover of €8.3bn in 2024.
However, the British company said this month that it expected a slower start to 2025 due to subdued market growth in the near term, although it predicted its 2025 underlying sales growth to be within its multi-year range of 3pc to 5pc.
Mr Schumacher said it had been a 'privilege' to lead Unilever.
He said: 'We have made real progress and I am proud of what we have achieved in a short period of time.'
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