New Unilever CEO Hein Schumacher Announces Management Overhaul, Focus on Core Products, and Dollar Shave Club Sale

Schumacher's Measures Falls Short as Investors React to Unfocused Revamp Plan and Uninspiring Q3 Results; Dollar Shave Club Sale to Nexus Capital Management Masks Absence of Long-term Vision.

Hein Schumacher, the new CEO of Unilever, has launched a management overhaul as part of his strategic turnaround plan. He has appointed a new CFO, Fernando Fernandez, and announced a focus on the company's best-selling core products while ruling out any major acquisitions.
Unilever will sell its direct-to-consumer grooming brand, Dollar Shave Club, to US investment firm Nexus Capital Management, retaining a 35 percent minority stake. The sale is part of the company’s strategy to refocus its portfolio towards core strategic growth areas.
The new CEO plans to simplify the business by prioritizing the top 30 “power brands” in the company's portfolio. These brands, including Dove, Dermalogica, Paula’s Choice, and Pond’s, generate more than 70 percent of Unilever's turnover. Schumacher also hinted at potential future disposals to optimize the portfolio.
Unilever reported a decline in sales volume by 10 percent in Europe, attributed to a drop in its ice cream division due to poor weather over the summer. Despite these setbacks, the company's underlying sales grew by 5.2 percent in Q3 of 2023, driven by higher prices.
Schumacher's plan drew criticism from investors who felt the company lacked a long-term vision and was reacting inadequately to underwhelming Q3 results. Unilever's shares dropped by approximately 2.7 percent after the announcement.