Unilever CEO Lays Out Bold Strategy to Regain Investor Confidence
Unilever’s new CEO Hein Schumacher has unveiled a clear-cut plan aimed at reigniting growth and improving shareholder returns after a prolonged period of underperformance. In his first major financial update since taking the helm in July, Schumacher announced a renewed focus on strengthening Unilever’s 30 “Power Brands,” streamlining operations, and improving execution across its sprawling portfolio.
Nearly three-quarters of Unilever’s revenues now come from these Power Brands—household names such as Dove, Hellmann’s, and Magnum—which the company intends to prioritize with increased marketing and innovation support. Schumacher described prior brand investments as “insufficient” despite significant ad spending. The group spends around €7 billion annually on media and marketing.
“The quality of our growth, productivity, and returns have all under-delivered,” Schumacher stated. His new strategic direction, dubbed the “Action Plan,” targets faster decision-making, improved accountability, and stronger customer-centricity.
In a move to improve margins and reduce complexity, Unilever has also signaled a return to tighter cost control. This includes plans to slim down internal processes and reinvest savings into brand building and research. The company will increase investment behind its most profitable and scalable brands, reducing support for underperforming SKUs.
Shares rose by 3% following the announcement, as investors welcomed the shift in tone and strategic reset. Unilever also reported a 5.2% increase in underlying sales for Q3, narrowly missing analyst expectations of 5.3%. Volumes fell 0.6%, indicating continued reliance on price hikes to drive topline growth.
Since January 2022, Unilever’s share price has declined nearly 9%, underperforming rivals Nestlé and Procter & Gamble. Recent criticisms from major shareholders, including activist fund Trian Partners—run by investor Nelson Peltz, who now sits on the board—have increased urgency for reform.
Schumacher emphasized a shift away from what he termed “corporate slogans” and signaled a more pragmatic, brand-led approach. There is no immediate plan to pursue further portfolio restructuring, such as spinning off the food division, although management has not ruled out future moves pending performance outcomes.
Industry analysts say Schumacher’s back-to-basics strategy could help