Unilever targets £830m in productivity savings by 2029

Unilever has said it is targeting around one billion euros (£830 million) of productivity savings by the end of 2029 amid efforts to simplify its operations.

The consumer group said the savings will help to address costs linked to the merger of its food business with US rival McCormick.

The company told shareholders ahead of an investor event that it will secure savings through “organisational simplification, process redesign and technology initiatives”.

It did not disclose whether jobs would be impacted by the simplification efforts.

Unilever said it will become a more focused home and personal care business after the food deal with McCormick – which affects brands including Hellman’s, Marmite and Pot Noodle – completes next year.

It comes after the business span off its Magnum ice cream operation last year.

The Dove owner said it is also targeting annual underlying sales growth of between 4% and 6% in the medium term and a “modest” improvement in operating margins.

Fernando Fernandez, chief executive of Unilever, said: “Unilever is becoming a sharper, more focused HPC business, with Power Brands and a global footprint that provide significant opportunities for growth.

“Through Desire at Scale, we are elevating our brands, bringing together better innovation and execution excellence.

“Our new operating model will combine a centralised global strategy with excellence in local execution, aiming for portfolio convergence and simplification, leveraging our market leading brands and premium digital disruptors.

“We are building from a position of strength, and our priority is to deliver sustained, competitive volume-led growth and consistent hard currency earnings expansion.”