Schumacher’s stance aligns with that of his predecessor, Alan Jope, who also resisted the idea of spinning off the food division. However, Jope did reorganize Unilever’s business units last year. Analysts prodded Schumacher on the possibility of splitting up the food segment if performance does not improve, but he maintained that the current focus is on maximizing value creation within the existing business.
In his opening presentation, Schumacher highlighted the need to enhance Unilever’s overall competitiveness. Despite pockets of strong performance, he acknowledged that the company has been losing market share in some areas due to factors such as premiumization by competitors. Improving volume growth and maintaining competitiveness are key goals moving forward.
Unilever’s food business, particularly nutrition and ice cream, has faced challenges in recent quarters. The company reported declines in volumes for these categories, partly attributed to consumers opting for value formats and unfavorable summer weather in Europe. Despite raising prices, Unilever has not fully recovered inflation and gross margins, which remain under pressure.
The company remains focused on its billion-euro power brands, which represent a significant value-creation opportunity. Schumacher emphasized the importance of consistently supporting and executing these brands while acknowledging the need for selective portfolio pruning and targeted acquisitions in high-growth areas.
Overall, Schumacher is confident that Unilever can achieve its annual sales growth target of 3-5%. He also emphasized the importance of signing up for the company’s daily news round-up to stay updated on industry insights and gain a competitive edge.
