Unilever is searching for a new chief financial officer (CFO) after announcing that its current CFO, Fernando Fernandez, is to become chief executive officer (CEO).

Fernandez was appointed CFO in January 2024, following a tenure as president of beauty and wellbeing, after holding roles including president for the Latin America division and CEO for both Brazil and Philippines.

The appointment comes as the British multinational consumer packaged goods firm announced that its CEO, Hein Schumacher, will step down from the role on 1 March.

Schumacher stated: "It has been a privilege to lead Unilever. We have made real progress and I am proud of what we have achieved in a short period of time. With a clear strategy, a portfolio reset in motion and a strong leadership team in place, I look forward to seeing Unilever move from strength to strength in the future."

Unilever has said that its search process for a permanent CFO has begun, with its current deputy CFO and group controller, Srinivas Phatak, serving as acting CFO from 1 March.

The firm has said that its outlook for 2025 and its medium-term guidance remains unchanged.

Head of equity research at Quilter Cheviot, Chris Beckett, said that losing a CEO after 18 months is “never a good thing”, and it “does not suggest things were going well behind the scenes”, with the news coming during the firm’s strategy turnaround.

Beckett concluded: "The last set of results suggested that turnaround had stalled somewhat, with weak guidance and sales growth only likely to improve as the company passes on higher commodity costs.

"The change at the top of Unilever will not see a change in that strategy, which is positive, and guidance has been reiterated. However, the new CEO, current CFO Fernando Fernandez, will have been pivotal in agreeing and implementing that strategy and ultimately is the best the company could do for now. He is well liked and respected and is unlikely to rock the boat, but clearly, as recent results show, work still needs to be done to bring back that momentum.

"Unilever has a long way to go on its road to recovery. The share price offers a bit of headroom to do that, but events such as this will not go down well with investors. Results will be watched even more closely now to ensure there are no signs of cracks within that turnaround strategy."

---