Unilever Targets Long-Term Value with €1.5 Billion Share Buyback
Unilever has unveiled a €1.5 billion share buyback programme, signaling a renewed focus on shareholder value amid decisive steps to streamline operations and bolster profitability.
The buyback, announced on May 9, 2024, is scheduled to begin immediately and conclude by the end of the year. It forms part of Unilever’s broader capital allocation strategy and commitment to delivering improved returns to shareholders. The move follows its first-quarter results, which saw underlying sales growth of 4.4%—driven by price increases rather than volume gains.
This latest initiative comes as the FMCG major intensifies efforts to refocus its brand portfolio and enhance operational efficiency. Unilever has already outlined plans to spin off its ice cream division—home to brands such as Magnum and Ben & Jerry’s—into a standalone business by the end of 2025. This restructuring is expected to simplify Unilever’s overall business model and sharpen its focus on higher-margin categories like beauty and personal care and home care.
CEO Hein Schumacher has emphasized Unilever’s strategic shift toward profitability and strong brand performance, stating that the buyback “underscores our confidence in the strength of our business and future cash generation potential.”
Unilever last executed a share repurchase programme in 2022, when it returned approximately €3 billion to shareholders. The return to this capital allocation strategy reflects management’s renewed confidence in its earnings trajectory and strengthened operational focus.
Also worth noting is the company’s commitment to maintaining its current dividend policy alongside this buyback. This dual-pronged capital strategy is likely to appeal to long-term investors seeking both income and capital appreciation.
For FMCG stakeholders, the buyback highlights an evolving approach to portfolio management and value creation amid a challenging macroeconomic environment. As consumer goods giants face mounting pressure to maintain margins, optimize supply chains, and meet sustainability goals, moves like these serve as strategic signals to the market on priorities and performance expectations going forward.