Latest news with #HeinSchumacher
Yahoo
25-04-2025
- Business
- Yahoo
Price hikes help Unilever and Nestlé beat analyst estimates—but tariffs could push consumers to their limits
Unilever and Nestlé, some of the world's largest consumer companies, saw strong sales growth in the first three months of 2025 despite the looming threat of tariffs. The rivals' growth came from higher demand for some premium products and price hikes to offset soaring cocoa and coffee prices. Unilever's underlying sales were up 3% during the first quarter, with its personal care category bringing in the most business. The London-listed company's so-called power brands, contributing to 75% of the group's turnover, saw sales jump by 3%. Unilever is in the middle of a shake-up that's seen key leadership changes and an overhaul in its business focused on streamlining and gaining market share from rivals. During the pandemic, Unilever began to lose shoppers amid price increases to offset costs. Earlier this month, the company ousted its CEO Hein Schumacher, and put CFO Fernando Fernandez in charge. Fernandez has had a single resounding message since taking on the top job: to make big changes at the consumer brand behind Dove soap and Vaseline cream. Fernandez said the company's new direction would mean 'a ruthless obsession with the consumer' during Thursday's earnings call. 'We have a resilient portfolio, good momentum and, above all, a very clear sense of what we need to do,' the new CEO said. Nestlé has faced similar struggles. The Swiss company behind KitKat and Nespresso also reacted to surging raw materials costs by jacking up the price tags on its products, which its chair, Paul Bulcke, said Nestlé 'went a bit too far with.' However, as demand for its coffee and confectionery, such as Smarties and Quality Street, boomed in the first quarter, the company reported a 2.8% organic revenue increase, beating analyst estimates of 2.6%. 'We are trying to take as much price as we can to cover our costs while being mindful of the consumer response in a competitive environment,' CEO Laurent Freixe said, Reuters reported. 'Some political decisions, economic decisions taken have rather undermined already soft consumer confidence." Nestlé, too, is undergoing a shift in its business to focus on 'billionaire brands,' or its strong-performing suite of brands that can become engines of growth. The Vevey-based company plans to slash $2.8 billion in costs by 2027. Consumer companies like Unilever and Nestlé constantly jostle over pricing to deliver strong top-line figures without upsetting shoppers. The subject became sensitive in the economic aftermath of the pandemic when cash-strapped consumers alienated big brands amid high inflation in favor of the best deals. Tariff talk in the U.S. threatens to bring some of those pressures back, as experts worry about the medium-term impact of additional levies on broader consumer sentiment. This is set against the backdrop of eye-popping cocoa and coffee prices, the key ingredients in some of Unilever's and Nestlé's top products. Given that their products are sold worldwide, Unilever and Nestlé have expansive manufacturing presences across regions. Nestlé, for instance, makes roughly 90% of its U.S. products within the country, shielding it from the worst impact of tariffs. However, the companies also count the U.S. as their biggest market in most product categories, making demand from the country critical to their financial health. How consumers cope with a changing global order will determine demand for the consumer goods the two companies make. Unilever noted 'declining consumer sentiment,' while Nestlé said political and economic decisions dented 'already soft consumer confidence.' On Wednesday, British consumer company Reckitt Benckiser, which makes Dettol cleaning liquids and Strepsils lozenges, also warned of wavering consumer confidence. These challenges could determine demand in the competitive market for consumer goods through 2025. 'While the full picture on tariffs is still unfolding, our analysis suggests that, at this stage, the direct impact on our business will be limited,' Fernandez said. Meanwhile, Nestlé's CFO Anna Manz warned that tariffs may hurt select parts of its business, such as bottled water and Nespresso capsules. The Swiss giant said it would cut prices by 1% in the U.S. to maintain its appeal with American shoppers. While Nestlé and Unilever's size and scale provide ample cushioning, they'll still have to watch for private labels offering the same products at lower prices. "The number of retailers that have developed the capabilities of the multinational consumer companies has increased quite significantly," Aftab Hussain, managing director and senior partner in BCG's consumer and retail team, told Reuters. "You're seeing innovations come through from retailers on private brands that's actually ahead of the (bigger) brands." This story was originally featured on
Business of Fashion
24-04-2025
- Business
- Business of Fashion
Unilever Sales Rise 3% on Demand For Premium Products
Unilever beat estimates for first-quarter underlying sales growth on Thursday, helped by price increases and strong demand for its premium products, and said it expected the direct impact of tariffs to be limited. Consumer goods companies, already struggling to regain shopper loyalty after sharply hiking prices for years, have in recent months found themselves forced to navigate unpredictable consumer habits shaped by fears over the impact of Trump's tariffs. The companies were initially forced to raise prices and accept thinner margins due to elevated costs from the Covid-19 fallout, which were further worsened by soaring energy prices after Russia's invasion of Ukraine. 'We are conscious that the macroeconomic environment, currency stability and consumer sentiment remain uncertain and we will be agile in adjusting our plans as necessary,' Unilever said. The update on Thursday marks Unilever's first since it surprised investors in February by ousting former CEO Hein Schumacher and appointing CFO Fernando Fernandez as his successor in March. The maker of Dove soap and Ben & Jerry's ice cream reported 3% underlying sales growth for the quarter ended March 31, topping analysts' expectations of a 2.8 percent rise and reaffirmed its 2025 outlook. Under former CEO Hein Schumacher, Unilever had laid out cost cuts last year, including separating the ice cream division through a demerger and cutting thousands of jobs to address years of underperformance. The company had said in February that its ice cream business will be listed in Amsterdam and have secondary listings in London and New York. Unilever, whose other brands include Vaseline, Hellmann's mustard and Lifebuoy, said it was confident about its full-year plans despite the global macroeconomic uncertainty. The company said its productivity programme was ahead of plan, and is expected to deliver about £550 million ($729.74 million) in savings by the end of 2025. By Chandini Monnappa and Richa Naidu; Editors: Sherry Jacob-Phillips and Louise Heavens Learn more: Unilever Acquires Refillable Deodorant Brand Wild Rumours had swirled since February that the personal care giant was on track to purchase the British start-up for £230 million.
The Independent
24-04-2025
- Business
- The Independent
Unilever cuts 6,000 jobs so far under ongoing revamp as ice cream spin-off nears
Consumer goods giant Unilever revealed it has already axed around 6,000 jobs so far as part of an ongoing major overhaul that will also see it spin off its ice cream arm. The group behind well-known brands such as Marmite and Dove soap said it was 'ahead of plan' on the restructure, which was announced last year and will lead to 7,500 job cuts worldwide in a bid to save 800 million euros (£683.9 million). Unilever said about 6,000 of those roles had already been stripped out by the end of the first quarter and 550 million euros (£470.2 million) of the cost savings are set to be achieved in 2025. The group, which has its headquarters in Blackfriars, London, employed around 6,000 employees in the UK and 128,000 employees globally before the restructure. The firm said it was pressing ahead with the separation and listing of its Ben & Jerry's and Magnum ice cream arm, to be called The Magnum Ice Cream Company, in the final three months of 2025, while it will operate as a standalone business from July 1. The business will have its primary listing in Amsterdam, with secondary listings in London and New York. Unilever said it expected the impact of new trade tariffs on its profitability 'to be limited and manageable'. 'All this being said, we are conscious that the macroeconomic environment, currency stability and consumer sentiment remain uncertain and we will be agile in adjusting our plans as necessary,' it added. Its first-quarter update showed sales lifted 3% on an underlying basis, but were down 0.9% at 14.8 billion euros (£12.7 billion) on a reported basis and including a hit from disposals and a currency exchange impact. Unilever stuck by its outlook for underlying sales growth of 3% to 5% for the year as a whole. Recently appointed chief executive Fernando Fernandez, who took over in March after the abrupt departure of former boss Hein Schumacher, said: 'Heightened global macroeconomic uncertainty is a fact; however the quality of our innovation programme, the strong investment behind our brands and our improving competitiveness give us confidence we will deliver on our full-year plans.'
Yahoo
09-04-2025
- Business
- Yahoo
Unilever faces investor revolt over new chief's pay package
Unilever, the FTSE-100 consumer goods giant behind Marmite and Lynx, is facing an investor backlash over its new chief executive's multimillion pound pay package. Sky News has learnt that ISS, a leading proxy adviser, has recommended that shareholders vote against Unilever's remuneration report at its annual meeting later this month. Sources familiar with ISS's report on Unilever's AGM resolutions say the agency objects to the discount of just €50,000 that the Ben & Jerry's owner has applied to the base salary of Fernando Fernandez, compared to Hein Schumacher, his predecessor. Tariffs latest: Trump claimed world was 'kissing my a**' for deals Unilever surprised the City in February when it announced that Mr Schumacher would leave after just two years in the job, amid frustration in its boardroom about the pace of growth. In an accompanying statement, Unilever said Mr Fernandez - previously the chief financial officer - would be paid a basic salary of €1.8m, modestly lower than Mr Schumacher's €1.85m. In a summary of ISS's report, the proxy adviser said Mr Fernandez's "base salary as new CEO is significant and represents a small discount to the former CEO Hein Schumacher's base salary". "The company does not appear to have sufficiently accounted previously raised shareholder concerns on the CEO role's pay arrangement when setting Mr Fernandez's remuneration." Unilever had also "disapplied time pro-rating" in respect of former executive directors' long-term share awards, meaning that the company could have legitimately decided to award them smaller amounts of stock than it did. On Wednesday afternoon, shares in Unilever were trading at around £44.79, giving the maker of Magnum ice cream and Persim washing-up liquid a valuation of close to £115bn. Unilever did not respond to a request for comment.
Sky News
09-04-2025
- Business
- Sky News
Unilever faces investor revolt over new chief's pay package
Unilever, the FTSE-100 consumer goods giant behind Marmite and Lynx, is facing an investor backlash over its new chief executive's multimillion pound pay package. Sky News has learnt that ISS, a leading proxy adviser, has recommended that shareholders vote against Unilever's remuneration report at its annual meeting later this month. Sources familiar with ISS's report on Unilever's AGM resolutions say the agency objects to the discount of just €50,000 that the Ben & Jerry's owner has applied to the base salary of Fernando Fernandez, compared to Hein Schumacher, his predecessor. Unilever surprised the City in February when it announced that Mr Schumacher would leave after just two years in the job, amid frustration in its boardroom about the pace of growth. In an accompanying statement, Unilever said Mr Fernandez - previously the chief financial officer - would be paid a basic salary of €1.8m, modestly lower than Mr Schumacher's €1.85m. In a summary of ISS's report, the proxy adviser said Mr Fernandez's "base salary as new CEO is significant and represents a small discount to the former CEO Hein Schumacher's base salary". "The company does not appear to have sufficiently accounted previously raised shareholder concerns on the CEO role's pay arrangement when setting Mr Fernandez's remuneration." Unilever had also "disapplied time pro-rating" in respect of former executive directors' long-term share awards, meaning that the company could have legitimately decided to award them smaller amounts of stock than it did. On Wednesday afternoon, shares in Unilever were trading at around £44.79, giving the maker of Magnum ice cream and Persim washing-up liquid a valuation of close to £115bn.
