By Ahmed Abdelsalam
Consumer goods giant Unilever has announced a target of around one billion euros (£830 million) in productivity savings by the end of 2029 as it simplifies operations ahead of merging its food business with US rival McCormick.
Productivity Savings Plan
The company told shareholders ahead of an investor event that savings will be achieved through organisational simplification, process redesign and technology initiatives. Unilever did not disclose whether jobs would be affected by the simplification efforts.
Food Business Merger with McCormick
The merger, which includes brands such as Hellmann’s, Marmite and Pot Noodle, is expected to complete next year. Unilever said it will become a more focused home and personal care business after the deal closes. The company spun off its Magnum ice cream operation last year.
Growth Targets and Operating Model
Unilever is also targeting annual underlying sales growth of between 4% and 6% in the medium term and a modest improvement in operating margins. The group reported its best quarterly sales performance in over a decade.
CEO Comments
Chief executive Fernando Fernandez said Unilever is becoming a sharper, more focused home and personal care business with power brands and a global footprint offering significant growth opportunities. He outlined a new operating model combining centralised global strategy with excellence in local execution, aiming for portfolio convergence and simplification.
