Unilever, a London-listed FMCG giant, has announced an “action plan” to address its underperformance, along with the appointment of a new finance chief to replace Graeme Pitkethly.
The company’s third-quarter and nine-month results revealed a decline in volumes across the group, particularly in its nutrition and ice cream divisions. Despite this, Unilever has agreed to sell a majority share in Dollar Shave Club while retaining a 35% interest.
The incoming CEO, Fernando Fernandez, will take over from Pitkethly on 1 January. Unilever’s three-point action plan focuses on faster growth, productivity and simplicity, and performance culture. The company aims to achieve annual underlying sales growth of 3-5%.
Additionally, Unilever plans to rebuild its gross margin and implement sustainability initiatives while making executive changes in business areas. Matt Close and Hanneke Faber will be leaving their roles in food and nutrition, with replacements to be named. Unilever has also created a chief growth and marketing officer position to be filled by Esi Eggleston Bracey.
Overall, Unilever aims to deliver brand superiority, investment, and returns, while selectively optimizing its portfolio.
The company believes that despite recent underperformance, its strong fundamentals position it well to achieve future success.
