Core Viewpoint - Unilever's current CEO Hein Schumacher will officially resign on March 1, 2024, with CFO Fernando Fernandez set to take over, raising concerns about the unfinished aggressive reforms during Schumacher's tenure and the company's stagnant performance [1][5]. Group 1: Leadership Changes - Hein Schumacher, who took over as CEO in July 2023, is known for his aggressive reform approach, having previously led significant changes at FrieslandCampina and Heinz [2][3]. - During Schumacher's tenure, over half of Unilever's leadership team underwent changes, including key positions such as CFO and heads of various business units [3]. Group 2: Reform Initiatives - Schumacher introduced the "Growth Action Plan" shortly after his appointment, which included divesting non-core businesses, laying off 7,500 employees, and optimizing the brand portfolio [2]. - The reforms were seen as radical compared to Unilever's previous more conservative approaches to growth and sustainability [3][4]. Group 3: Performance Metrics - Despite some successes, such as record sales in 2024 and strong growth in the beauty segment, overall performance remained lackluster, with total sales reaching €60.8 billion, a 1.9% increase, while operating profit fell by 3.7% to €9.4 billion [5]. - The Asia-Pacific region accounted for 42.8% of Unilever's revenue in 2024, but the Chinese market experienced a decline, highlighting ongoing challenges [6][7]. Group 4: Future Challenges - New CEO Fernando Fernandez faces the challenge of restoring growth, particularly in the crucial Chinese market, where strategies will focus on enhancing business capabilities and leveraging e-commerce [6][7]. - Industry experts note that Unilever's multi-brand strategy in the beauty sector may not provide a competitive edge, especially as the Chinese beauty market undergoes significant changes [7].

Core Insights - Unilever has decided to close its UK clean beauty brand REN due to internal factors and market challenges, indicating a strategic shift under new CEO Fernando Fernandez [1] - The company has also closed its TATCHA brand's Tmall flagship store and ceased updates on social media, signaling a significant adjustment in its high-end beauty strategy [1] - Unilever's Q1 2025 revenue was €14.8 billion, a slight decline of 0.9% year-on-year, with a 1.3% increase in underlying sales volume [1] Group 1: Business Strategy and Restructuring - Unilever initiated a "growth action plan" last year, which included cutting approximately 7,500 jobs, about 6% of its workforce, and reducing its brand portfolio from over 400 to 30 core brands [2] - The company aims to save approximately €550 million by the end of 2025 through these restructuring efforts, having already reduced around 6,000 full-time employees [2] - The ice cream business is expected to be separated by Q4 2025, with independent operations starting on July 1 [2] Group 2: Financial Performance - Unilever's Q1 revenue breakdown shows Beauty & Wellbeing and Personal Care each generated €3.3 billion, while Home Care, Nutrition, and Ice Cream generated €3.0 billion, €3.4 billion, and €1.8 billion respectively [3] - The company maintains a full-year outlook for 2025, expecting underlying sales growth between 3% and 5% [3] Group 3: Market Dynamics - The Asia-Pacific region is Unilever's largest market, contributing 44% of total revenue, with Q1 revenue of €6.5 billion and a 2% increase in underlying sales [4] - However, the Chinese market has shown signs of decline, with a high single-digit drop in Q1, continuing a trend from the previous year [5] - Unilever is implementing targeted interventions in China, such as expanding product offerings and enhancing brand promotion, with expectations for improvement by H2 2025 [5] Group 4: Competitive Landscape - The company faces increasing competition from local brands and market dynamics, particularly in the personal care and beauty segments, where consumer preferences are shifting towards online and personalized experiences [6] - Unilever's ice cream and personal care segments are under pressure from "consumption downgrade," impacting profitability [6] - Competitors like L'Oréal are planning to maintain growth in China, further intensifying the competitive environment for Unilever [6]