Unilever’s new CEO, Fernando Fernandez, aims to refocus the company on personal care and beauty brands over food, leading to a drop in pretax profits. The stock price has remained stagnant, but investors hope Fernandez can execute a swift turnaround. The company is undergoing a transformation, with job losses and a new strategic direction.

Despite reported losses in pretax profits, Unilever saw growth in underlying sales, with a focus on scaling back its food division and investing in premium personal care products. Top brands like Vaseline and Dove are driving growth, and the company is betting on male grooming as a key growth driver. The strategy aims to attract health-conscious consumers and innovate in premium products.

While Unilever faces challenges in a competitive market and potential volatility from currency swings, fund managers like Jeremy A. Smith and Nick Train are optimistic about Fernandez’s leadership. Unilever’s extensive emerging markets footprint and focus on premium products set it apart from competitors, with potential for long-term growth. The stock is currently undervalued, making it an attractive option for investors. Unilever’s new CEO Fernando Fernandez aims to simplify operations in the consumer goods industry. The company saw a decline in pretax profits in its recent half-year report. Fernandez plans to shift Unilever’s focus towards personal care and beauty products, moving away from food brands.

Read more at Morningstar UK

Unilever’s new CEO, Fernando Fernandez, aims to overhaul the global consumer goods business. The company reported a decrease in pretax profits for the first half of the year. Fernandez plans to shift Unilever’s focus towards personal care and beauty brands rather than food products.: Is Unilever Stock a Buy After the CEO’s Shakeup?