Unilever outlines strategic growth plan, aims for top returns

Unilever (LON:), the global consumer goods company, is hosting an Investor Event today to outline the progress and future strategy under its “Growth Action (WA:) Plan 2030.” The plan is designed to achieve consistent, superior performance through market-making brands.

The company confirmed its trajectory to complete an extensive €800 million productivity program and the spin-off of its Ice Cream division by the end of 2025. Post-separation, Unilever will concentrate on four main Business Groups: Beauty & Wellbeing, Personal Care, Home Care, and Foods, previously known as Nutrition.

These groups will be propelled by 30 Power Brands across 24 key markets, which make up nearly 85% of Unilever’s turnover. The other markets will operate under a unified Unilever strategy to leverage scale and simplicity.

The Growth Action Plan 2030 aims to build upon current strategies and improve performance through three strategic pillars: Focus, Excel, and Accelerate. The Focus pillar will concentrate on Power Brands and key markets poised for the highest returns, with plans to double down in India, accelerate growth in the U.S., and selectively expand in emerging markets, among other strategies.

Under the Excel pillar, Unilever will target five opportunities to drive brand growth, including superior brand quality, social-first demand creation, scalable innovations, premiumization, and growth channels.

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

Unilever’s medium-term guidance remains consistent, aiming for mid-single digit underlying sales growth, supported by a minimum of 2% underlying volume growth. The company also expects modest improvements in underlying operating margin, driven by gross margin expansion and productivity enhancements.

With ambitions to deliver top third total shareholder return among peers and an underlying return on invested capital in the high teens, 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 brighten everyday life for all,” reflects its focus on enhancing global consumer experiences. Schumacher shared his enthusiasm for the opportunities ahead and the company’s potential as they prepare to share detailed plans with investors later in the day.

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