Unilever CFO Takes on Procurement

Unilever has announced a significant expansion of its Chief Financial Officer Fernando Fernandez’s responsibilities as part of a leadership restructuring set to take effect on 1 January 2025.

The reshuffle comes at a pivotal moment as the multinational consumer goods giant moves to sharpen its focus on its top-performing "power" brands and streamline operations under its ambitious "Growth Action Plan 2030."

Fernando Fernandez, who became CFO in January 2024, will now oversee Unilever’s supply chain and procurement, alongside digital, technology and business services. This comes with a 7.5% fixed pay increase.

Fernando brings with him 37 years of experience at Unilever, including a history of leading successful business units like the Beauty & Wellbeing group, which generates €12.5bn (US$13.1bn) annually. Before his CFO appointment, he also served as Executive Vice President for Latin America and President of the Philippines and Brazil operations.

With this new role, Fernando will be responsible for key operational shifts that align with the company’s evolving strategy. 

"It's true our numbers have been better in the last few quarters, but we know this is a marathon. It's not a sprint. We will not be carried away by two or three good quarters. We know the credibility of the company as a high-performer compounder will be delivered if we sustain this performance in the long run," he explained at the Bernstein Strategic Decisions Conference in London back in September. 

Unilever's wider transformation

In an aim to address this, Unilever is undergoing significant transformation - headlined by its decision to spin off its ice cream business.

Brands like Magnum and Ben & Jerry’s, while hugely successful, operate under a different business model. This division, valued at an estimated US$19.5bn, contributed €2.4bn (US$2.4bn) in sales in Q3 2024. Unilever has hinted at plans for a public listing for the ice cream unit but has left the door open for potential buyers.

The separation reflects a broader effort to prioritise core brands such as Hellmann’s, Dove and Rexona, which account for more than 85% of the company’s revenue.

Under CEO Hein Schumacher, who took the reins in July 2024, Unilever aims to trim inefficiencies and focus investment where it delivers the most significant impact. This includes plans to cut approximately 7,500 jobs globally.

Hein's vision for Unilever includes maintaining profitability while leaning into the potential of digital technologies to streamline processes.

The company’s supply chain and procurement operations, now overseen by Fernandez, are pivotal in achieving these goals.

Unilever’s procurement transformation journey over the years has made significant marks on the wider industry; by assembling a dedicated team to review all spending, the company identified opportunities to streamline purchases and reduce redundancies.

Leveraging tools like reverse online auctions and standardised applications, Unilever centralised processes and built stronger supplier relationships.

This approach redefined procurement from a transactional function to a more strategic role, influencing industry practices and setting a precedent for collaborative supplier partnerships. Only time will tell if its 'Growth Action Plan 2030' will have the same effect. 

Leadership shifts to support growth

As part of the executive restructuring, Reginaldo Ecclissato will transition from Chief Business Operations and Supply Chain Officer to President of One Unilever Markets. The position will see him working closely with Schumacher to align Unilever’s regional markets under a cohesive strategy.

Meanwhile, Willem Uijen, currently Chief Procurement Officer, has been appointed Chief Supply Chain Officer and will report directly to Fernando. These moves are designed to ensure a smooth transition as Unilever adjusts its operating model to support long-term growth.

Unilever’s leadership adjustments are indicative of its ambition to remain agile in a competitive landscape.

By streamlining operations and zeroing in on high-impact areas like its top-performing brands and innovative business services, the company positions itself to thrive in an evolving market - but will it be enough? 

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