Unilever Unveils Strategic Growth Plan, Aiming for Maximum Returns

image

Unilever Unveils Strategic Growth Plan, Aiming for Maximum Returns

Global consumer goods company Unilever is today outlining its progress under the "Growth Action Plan 2030" and future strategies at its Investor Event. The plan aims to deliver consistent and superior performance through market-leading brands.

The company confirmed that it is on track to complete its comprehensive €800 million efficiency program and finalize the separation of its Ice Cream division by the end of 2025. Following the separation, Unilever will focus on four core Business Groups previously known as Nutrition: Beauty & Wellbeing, Personal Care, Home Care, and Foods.

These groups will be driven by 30 Power Brands in 24 key markets, which account for approximately 85% of Unilever’s turnover. Other markets will operate under a unified Unilever strategy to benefit from scale and simplicity.

The Growth Action Plan 2030 aims to enhance existing strategies and improve performance through three strategic pillars: Focus, Excellence, and Acceleration. The Focus pillar will concentrate on Power Brands and key markets with the highest return potential. This includes strategies to double investments in India, accelerate growth in the U.S., and selectively expand in emerging markets.

Under the Excellence pillar, Unilever will focus on five opportunities to drive brand growth: superior brand quality, social media-driven demand creation, scalable innovations, a shift to premium offerings, and growth channels.

The Acceleration pillar will prioritize capabilities such as science and technology, lean and agile supply chain, net efficiency, and scaled artificial intelligence to enhance performance.

Unilever's medium-term targets remain consistent. The company aims for mid-single-digit underlying sales growth supported by at least 2% underlying volume growth. Moreover, it expects moderate improvements in underlying operating profit margin, driven by gross margin expansion and efficiency gains.

With ambitions to deliver total shareholder returns in the top third among competitors and achieve high teens underlying returns on invested capital, Unilever's CEO Hein Schumacher expressed confidence in the Growth Action Plan 2030. Schumacher emphasized the company's commitment to delighting consumers and driving growth as Unilever continues its transformation.

The company's new purpose, "To make daily life more enjoyable for everyone," reflects its focus on enhancing global consumer experiences. Schumacher shared his excitement about the opportunities ahead and the company’s potential, indicating that detailed plans will be shared with investors throughout the day.