London
CNN
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The CEO of Unilever, the company behind popular ice cream labels such as Ben & Jerry’s and Magnum, has resigned after a stint of less than two years, as the UK-based corporation seeks to enhance its sluggish sales and profit margins.

Hein Schumacher will be succeeded by Unilever’s Chief Financial Officer, Fernando Fernandez, effective March 1, as announced in a statement released on Tuesday.

“The board has been impressed with Fernando’s decisive, results-driven management style and his capability to implement change swiftly,” stated Unilever Chairman Ian Meakins in the announcement.

Meakins emphasized that the board has “great confidence in (Fernandez’s) capacity to lead a high-performing management team and swiftly realize the benefits of the (growth strategy), delivering the shareholder value that the company’s potential requires.”

The unexpected news of Schumacher’s exit coincides with Unilever’s implementation of the Growth Action Plan, a strategy introduced in late 2023 aiming to reduce expenses while increasing sales and profitability.

On Tuesday morning, Unilever’s shares (UL) fell by nearly 1.6% by 5:43 AM ET.

Financial analyst Matt Britzman from Hargreaves Lansdown termed Schumacher’s resignation a “surprising turn of events,” a sentiment shared by other market observers.

“This unforeseen change might just ignite a transformation within Unilever that investors have eagerly anticipated,” he noted in a report on Tuesday.

Unilever boasts a wide array of well-known brands, including Dove soap, Hellmann’s mayonnaise, and Vaseline. As part of its growth strategy, the company is considering splitting off its substantial ice cream division.

Last year, Unilever indicated that this separation would allow it to become “a simpler, more focused organization” due to the ice cream segment’s “unique characteristics,” including seasonal demand and a supply chain that must accommodate frozen products.

The company is also planning to reduce its workforce by 7,500 positions, mostly in office roles, as it seeks to enhance productivity through technology integration.