The chief executive of Unilever, which owns ice cream brands such as Ben & Jerry’s and Magnum, has stepped down after less than two years at the helm, as the UK company works to boost its lackluster sales and profits.
Hein Schumacher will be replaced by Unilever’s Chief Financial Officer Fernando Fernandez on March 1, the company said in a statement Tuesday.
“The board has been impressed with Fernando’s decisive and results-oriented approach and his ability to drive change at speed,” Unilever Chairman Ian Meakins said in the statement.
Meakins added that the board is “very confident in (Fernandez’s) ability to lead a high-performing management team, realize the benefits of the (growth plan) with urgency and deliver the shareholder value that the company’s potential demands.”
Nathaniel Meyersohn discusses Unilever's plans to spin off its ice cream brands, including Ben & Jerry's and Magnum.
Related video Unilever to spin off ice cream brands as standalone company
The surprise announcement of Schumacher’s departure comes as the consumer goods giant implements its so-called Growth Action Plan, a program unveiled in late 2023 to cut costs and boost sales and profitability.
Shares in Unilever (UL) were down almost 1.6% by 5.43 a.m. ET Tuesday.
Matt Britzman, senior equity analyst at financial services firm Hargreaves Lansdown, called Schumacher’s resignation a “surprise twist,” echoing other analysts.
“This unexpected transition might be the spark that helps deliver a new version of Unilever that investors have long been waiting for,” he wrote in a note Tuesday.
Unilever owns many household-name brands including Dove soap, Hellmann’s mayonnaise and Vaseline. Part of its growth strategy involves spinning off its massive ice cream business.
Unilever said last year that the separation would help it become “a simpler, more focused company” as its ice cream business had “distinct characteristics” such as season-dependent demand and a supply chain that must be able to support frozen goods.
The company is also cutting 7,500 mostly office-based roles as it uses technology to boost efficiency.