Unilever Plc ruled out any major acquisitions as new Chief Executive Officer Hein Schumacher set out a strategy that includes overhauling management and focusing on its biggest brands live Hellmann’s and Dove.
The new CEO said he’ll only consider small acquisitions and vowed to increase gross margin and deliver shareholder returns in the top third of its peer group. Previous CEO Alan Jope was criticized for a failed effort to buy GSK Plc’s former consumer health business.
Schumacher said the plan will help reverse underperformance and strategic missteps in recent years which have angered investors. He wants to invest more in marketing of its 30 largest brands and sell off non-core products.
The Dutch executive, who joined from one of Europe’s largest dairy cooperatives, laid out his plan as Unilever reported a slight miss on third-quarter sales and a dip in volume. The company still reiterated its full-year guidance. Unilever has struggled to hold onto market share as inflation hits household budgets.
Beauty and wellbeing boss Fernando Fernandez was appointed as chief financial officer, starting on Jan. 1 and replacing Graeme Pitkethly. Unilever also announced that the heads of nutrition and ice cream will leave the company. Volumes of both of those businesses continued to decline in the third quarter.
Unilever also agreed to sell a majority stake in Dollar Shave Club, an acquisition of a subscription razor service that analysts derided for failing to live up to expectations. Unilever will keep a 35% stake.
Read More: Unilever’s New Boss Hein Schumacher Faces Long List of Investor Demands
Since Unilever’s failed lunge at the company now listed as Haleon Plc and activist Nelson Peltz joining the Unilever board, speculation has been rife that Unilever would eventually split off its nutrition and ice cream units.
(Updates with info on new CFO)
