Unilever plans to spin off its ice cream unit, home to popular brands such as Magnum and Ben & Jerry's, into a standalone business, as the consumer goods group announced a new cost-savings programme that would impact 7,500 jobs.
The spin off will begin immediately and is expected to complete by the end of 2025, the London-listed company said.
Unilever aims to deliver mid-single digit underlying sales growth and modest margin improvement after the split, it said in a statement, to become a 'simpler and more focused company'.
Cost Savings
The company launched a programme expected to deliver total cost savings of around €800 million over the next three years, and the proposed changes would impact around 7,500 roles globally, with total restructuring costs now anticipated to be around 1.2% of its turnover during the period.
In a statement, the group said that the separation of the ice cream business would mean that Unilever will be able to 'doing fewer things, better, with greater impact to drive consistent and stronger topline growth', with its continued presence in the beauty and wellbeing, personal care, home care and nutrition categories.
'Higher-Growth Business'
“The board is determined to transform Unilever into a higher-growth, higher-margin business that will deliver consistently for all stakeholders. Improving our performance and sharpening our portfolio are key to delivering the improved results we believe Unilever can achieve," commented Ian Meakins, chair.
“The separation of Ice Cream and the delivery of the productivity programme will help create a simpler, more focused, and higher performing Unilever. It will also create a world-leading ice cream business, with strong growth prospects and an exciting future as a standalone business.”
Elsewhere, chief executive Hein Schumacher added that the simplification of the group's portfolio will allow it "further unlock the potential of this business".
Additional reporting by ESM
