Unilever's Hein Schumacher steps down, CFO Fernando Fernandez to take over as CEO from March 1

Unilever Plc pushed out Chief Executive Officer (CEO) Hein Schumacher after less than two years, signalling that the board was not satisfied with the pace of restructuring at the fast-moving consumer goods (FMCG) giant. The board appointed Chief Financial Officer (CFO) Fernando Fernandez as the new CEO. The Anglo-Dutch FMCG major hailed Fernanadez's ability to ‘drive change at speed,' hinting that the board seeks a faster transformation.

The Hellmann’s mayonnaise and Ben & Jerry’s ice cream maker announced that Fernando Fernandez will take over as CEO on March 1. Schumacher's sudden departure hit Unilever's shares, which fell as much as 3.4 per cent on Tuesday. They had gained more than nine per cent since Schumacher took the helm. 

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The management change was made after a board meeting on Monday. The board concluded that Fernandez, who has been with Unilever for over 30 years, was the right person to execute the company's strategy. Schumacher took over from Alan Jope in July 2023, when investors' confidence was low after Unilever had granted activist investor Nelson Peltz a seat on the board.

The Dutch executive quickly kicked off a shakeup, including plans to spin off its ice cream business and cut costs. Schumacher tried to shift away from price-led growth where possible after a period of high inflation, focusing on expanding the volume of products sold. Unilever is facing pressure from investors to revitalise its fortunes, and the top management upheaval comes just weeks after Unilever announced underwhelming full-year earnings.

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Unilever veteran Fernandez elevated to CEO; Here's why

Fernandez, 58, has been with Unilever since 1988. Before he became CFO last year, he held several roles, such as President of Latin America, CEO of Brazil, and President of the Beauty & Wellbeing business. Chairman Ian Meakins said the Unilever board was impressed with his “decisive and results-oriented approach” and profound knowledge of Unilever’s operations. 

"While it is pleased with Unilever’s performance in 2024, there is much further to go to deliver best-in-class results,” said Meakins. Unilever’s brands also include Dove soap, Knorr stock cubes, and Pepsodent toothpaste. 

The company said its 2025 outlook or medium-term forecast remained unchanged, and the board was committed to "further accelerating" Schumacher's growth plan. Schumacher, who joined Unilever in July 2023, will step down as CEO in March and leave the company on May 31, 2025.

“I regret leaving Unilever earlier than anticipated,” Schumacher said in an email to Unilever staff seen by Bloomberg. “I stand by my record and approach,” Unilever said he is leaving by mutual agreement. Schumacher said, “We have made real progress, and I am proud of what we have achieved in a short period. ”

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When Schumacher became CEO, analysts and investors applauded Unilever's decision to choose an external candidate. Schumacher reset the group's strategy to address years of underperformance and laid out cost cuts last year, including separating its ice cream division and cutting thousands of jobs.

Schumacher, 53, will be treated as a "good leaver" and will continue to get his 1.85 million euros ($1.94 million) fixed pay until he leaves the business. "He will get an undisclosed payment for the remainder of this notice period," said Unilever. Srinivas Phatak, currently Unilever's deputy CFO and group controller, will become acting CFO while the company looks for a permanent replacement.

Fernandez will take over with Unilever while spinning off its ice cream arm. The company said it will list the unit primarily in Amsterdam this month, with London and New York getting secondary listings. Unilever also reported a four per cent increase in group underlying sales in the fourth quarter, narrowly beating guidance, and said profit should improve modestly in 2025.

The consumer goods sector has been coping with a supply chain crunch triggered by the 2020 COVID-19 pandemic, high commodity prices, and an energy crisis after the Russia-Ukraine war. Profit margins have been squeezed, and consumers have hit sales by switching to cheaper options.

With inputs from Bloomberg, Reuters