Dove and Marmite-maker Unilever missed its sales targets in the second quarter of the year as a turnaround plan from chief Hein Schumacher failed to convince customers.
Revenues at the FTSE 100 consumer giant ticked up by 3.9 per cent in the quarter, below the 4.2 per cent that analysts had been expecting
The results signal a growth plan from boss Hein Schumacher is failing to gather steam after a period in which it has been buffeted by the cost of living crisis and shoppers tightening their belts.
Earlier this year, the Knorr stock cube producer announced it would spin off its ice cream division, including Ben and Jerry’s. It is also in the midst of cutting around 7,500 jobs across the group.
“We continue to embed the Growth Action Plan, doing fewer things, better and with greater impact,” Schumacher said in a statement. “The implementation of a comprehensive productivity programme and the separation of Ice Cream are key to delivering on that commitment and we are progressing at pace.”
He added there was “much to do” but the firm remained “focused on transforming Unilever into a consistently higher performing business.”
Unilever said it continues to expect underlying sales growth for 2024 to be within its multi-year range of three per cent to five per cent.
In the first six months of the year, the company reported net profits of €4bn as total revenues rose 4.1 per cent to €16.1bn.
Bosses said the separation of its ice cream business was “underway and on track to complete by the end of 2025” and it was “working at pace” to establish a separate legal entity and carve out its financials.
Schumacher’s turnaround plan has been well received by the market in recent months, with shares trading up around 18.32 per cent.