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Unilever to separate ice cream business by end 2025

Fri 22 November 2024 14:20 | A A A

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(Sharecast News) - Consumer goods giant and Ben & Jerry's parent Unilever said on Friday that it remains on track to deliver its 800m productivity programme and to separate its ice cream business by the end of next year.

In a statement ahead of an investor day, the company said that after the separation of the ice cream segment, it will be focused on four business groups: beauty & wellbeing, personal care, home care and foods (formerly nutrition).

These four businesses will be driven by 30 "Power Brands" and operate across 24 business group-led markets, which represent nearly 85% of its turnover.

The remaining 100+ smaller markets will be run on a 'One Unilever' basis "to benefit from scale and simplicity, further enhancing our portfolio prioritisation and focus".

Unilever said its medium-term guidance remains unchanged. Once the ice cream business has been separated, it plans to deliver mid-single digit underlying sales growth, with underlying volume growth of "at least" 2%.

It expects "modest" underlying operating margin improvement, driven by gross margin expansion through operating leverage and productivity improvements.

Chief executive Hein Schumacher said: "Our goal is to deliver best-in-class performance with market-making, unmissably superior brands. We believe that our Growth Action Plan 2030 will help us to deliver on this ambition.

"Delighting our consumers is at the very heart of our plan. Through our company's new purpose, 'To brighten everyday life for all', we are focused on making the lives of people around the world more joyful, more convenient, more efficient and more sustainable.

"We are excited about the opportunities to drive Unilever's future growth, as we continue to progress Unilever's transformation and unlock the company's full potential. We look forward to sharing our plans with investors later today."

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