Unilever, one of the largest European consumer goods groups, has informed its shareholders of a new efficiency plan with which it aims to cut spending by a total of 1,000 million euros by 2029, although for the time being it has not provided a detailed breakdown of the measures planned.
According to information submitted by the company to the London Stock Exchange, this strategy is aimed at addressing the "irrecoverable" costs linked to the operation of its food division with McCormick. To do so, the multinational plans to rely on savings derived from a simpler organizational structure, the review and redesign of internal processes, and the rollout of specific technology projects.
At the same time, Unilever maintains its growth outlook, anticipating for 2027 an underlying annual increase in sales of between 4% and 6%, accompanied by an improvement in operating margin. These objectives fall within the aim of positioning shareholder profitability in the upper third of its industry.
The company will also implement a new operating model with which it intends to streamline its operations through simpler processes and a strategic decision-making hub. This will focus on the convergence of the portfolio, long-term resource planning, strengthening key marketing capabilities, corporate governance, the global rollout of its most important brands, and the drive of R&D programs with a multi-year horizon.
"Unilever is becoming a more precise and specialized high-performance computing (HPC) company, with leading brands and a global presence that offer significant growth opportunities," Unilever CEO Fernando Fernández said.
"Our new operating model will combine a centralized global strategy with excellence in local execution, with the aim of achieving convergence and simplification of the product portfolio, making use of our leading brands in the market and our first-class innovative digital solutions. We are building from a position of strength, and our priority is to achieve sustained and competitive growth driven by volume, as well as a steady expansion of revenues in strong currencies," he added.