Prime Highlights-
- Unilever targets about 1 billion euros in productivity savings by 2029 through organizational simplification, process redesign and technology initiatives.
- Unilever targets 4% to 6% underlying sales growth and a modest margin gain while focusing on home and personal care.
Key Facts-
- The savings will help offset costs linked to the merger of its food business with McCormick.
- The McCormick deal covers Hellmann’s, Marmite and Pot Noodle, and is set to complete next year.
Background-
Unilever has set a target of about 1 billion euros, or £830 million, in productivity savings by the end of 2029 as it works to simplify its operations.
The company shared the plan with shareholders ahead of an investor event. It said the savings will come from organizational simplification, process redesign and technology initiatives, and will help cover costs tied to the planned merger of its food business with US rival McCormick.
The company has not yet shared details on how the plan may affect jobs or staffing levels.
The deal covers brands including Hellmann’s, Marmite and Pot Noodle. Once the deal completes next year, Unilever will concentrate on its home and personal care business. The company already spun off its Magnum ice cream operation last year.
Unilever also set medium-term goals of 4% to 6% annual underlying sales growth and a modest rise in operating margins.
Chief Executive Fernando Fernandez said the Dove owner is becoming a sharper, more focused home and personal care business, with Power Brands and a global footprint that open strong growth opportunities.
“Through Desire at Scale, we are elevating our brands, bringing together better innovation and execution excellence,” Fernandez said. He added that the new operating model will pair a centralized global strategy with strong local execution.
“We are building from a position of strength, and our priority is to deliver sustained, competitive volume-led growth and consistent hard currency earnings expansion,” he said.
