The British consumer goods company with 128,000 employees also said it is launching a “productivity program” that is expected to lead to a reduction of about 7,500 mostly office-based jobs worldwide.
“Simplifying our portfolio and driving greater productivity will allow us to further unlock the potential of this business, supporting our ambition to position
The company's shares jumped more than 3% in late-morning trading on the
“The share price bounce goes some way in reversing what has been a difficult last year, as investors have fretted over a company with limited high growth prospects and in need of streamlining despite its reputation as a solid defensive play,” said
The company behind Hellman’s mayonnaise, Axe fragrances and Cif household cleaners said it is targeting underlying sales growth of mid-single digits after spinning off the ice cream business.
It saw sales volume drop 3.6% in 2022 after jacking up prices 13.3% on average across its brands that year. In response, it raised prices just 2.8% last year, and sales rose 1.8%.
Some analysts pointed out that splitting from
“A side benefit of the brand exiting Unilever’s portfolio is it might quieten the ‘go woke and go broke’ noise, but more widely the reasoning for the decision looks pretty sound," said
He noted that the ice cream spinoff had not been widely anticipated by the market even if "political pronouncements from Ben & Jerry’s had provoked a meltdown among some investors."
Ben & Jerry’s has supported liberal issues like LGBTQ+ rights,
The brand announced in 2021 that it would stop selling its ice cream in the
More recently, since the Israel-
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