Unilever CEO Sets Out New Plan to Simplify Business, Rebuild Margins -- At a Glance
26 Octubre 2023 - 7:16AM
Noticias Dow Jones
Unilever's new CEO Hein Schumacher on Thursday outlined a plan
to tackle part of the business underperformance and simplify it in
order to achieve the board's middle-term targets through production
optimization and focusing investments.
-- The Anglo-Dutch retailer--which owns consumer brands such as
Ben & Jerry's ice cream and Dove soap--will focus on developing
its 30 main brands, which together are responsible for 70% of the
group's turnover. Unilever currently owns 400 brands.
-- Unilever plans to optimize its portfolio and step away from
major acquisitions as it seeks to boost value creation by improving
its existing business.
-- Production is set to be simplified in order to rebuild
margins through improved productivity instead of gross savings.
This will be achieved by bringing together research and development
efforts, as well as working on the portfolio synergies. "We need to
dial up the strength we already had, and we need to be much
sharper," Schumacher said.
-- The CEO also outlined a new performance-oriented leadership
culture. It includes a change in the remuneration structure with an
annual performance review and a better line of sight on
remuneration increases for the company's more than 15,000 office
employees.
-- The action plan is expected to drive growth and to help the
company reach its middle-term targets of underlying sales growth of
3% to 5%, modest margin expansion and mid-teens return on invested
capital.
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(END) Dow Jones Newswires
October 26, 2023 08:01 ET (12:01 GMT)
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