By Michael Susin

Unilever's new Chief Executive Officer Fernando Fernandez expects to accelerate the company's turnaround plans by selling a number of underperforming brands in the food segment.

In a fireside chat with Barclays Head of Consumer Staples Warren Ackerman, published on Unilever's website late Monday, the CEO said there is about 1 billion euros ($1.08 billion) of local brands in its foods Europe division that "don't fit well" with the company's portfolio.

The consumer-goods company also has a further 500 million euros in smaller markets that it doesn't see the possibility to scale, he added.

"My intention is to act on all of these, probably at a faster pace," Fernandez said.

The comments regarding the potential disposal of these brands comes as the company seeks to grow the business by focusing on the most profitable brands.

The food business delivered a combined turnover of 13.4 billion euros in 2024, with 60% consisting of the brands Knorr and Hellmann's, which both represent significant profit margin and cash generation. "We are committed to growing that business," he said.

Unilever plans to save 800 million euros over the next three years with cost-cutting measures that will shed 7,500 jobs globally. It is also spinning off its ice cream business as a stand-alone company.

Write to Michael Susin at michael.susin@wsj.com

(END) Dow Jones Newswires

March 11, 2025 06:17 ET (10:17 GMT)

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