City round-up: Unilever; LBG Media; Franchise Brands
Unilever, the consumer goods giant, has seen annual revenues rise for the 2024 financial year, although pre-tax profits have fallen.
Turnover grew 1.9% to €60.8bn, but pre-tax profits fell from €9.339bn to €8.869bn.
The group, which operates a key home and personal care manufacturing site and research and development facility at Port Sunlight, Wirral, also confirmed that the separation of its ice cream division remains on track.
Hein Schumacher
CEO, Hein Schumacher, said: “Today’s results reflect a year of significant activity as we focused on transforming Unilever into a consistently higher performing business.
“Under the Growth Action Plan, we committed to doing fewer things, better and with greater impact. We executed the plan at pace and made progress in 2024.
“Underlying sales grew 4.2% with volumes up 2.9%, led by our Power Brands, with particularly strong performances from Dove, Comfort, Vaseline and Liquid IV. Fewer, bigger innovations helped to deliver volume growth consistently above two per cent in each quarter.
“All Business Groups delivered positive volume growth for the year. Growth was underpinned by gross margin expansion of 280bps, fuelling increases in brand investment and profitability.”
He added: “We continue to sharpen our portfolio, allocating capital to premium segments by acquiring scalable brands in attractive markets, such as K18 and Minimalist, and announcing the divestment of local food brands such as Unox and Conimex, as we focus our Foods portfolio on cooking aids and condiments categories.
“The comprehensive productivity programme we announced in March is being implemented at pace and we are ahead of plan in helping to create a leaner and more accountable organisation.
“We are taking decisive actions in Indonesia, where long standing challenges required a reset of the business, and China, where we are transforming our go-to-market approach during a market slowdown. We expect to see the benefits of these actions from the second half of 2025.”
He said the separation of Ice Cream remains on track and Unilever is making good progress on the key workstreams.
“We announce today the appointment of the Chair Designate for the demerged Ice Cream business and details of the listing structure.
“Market growth, which slowed throughout 2024, is expected to remain soft in the first half of 2025.
“The steps we have taken in 2024, including the launch of our refreshed GAP2030 strategy, further reinvestment in our brands and strong innovation pipelines leave us better positioned to deliver on our ambitions in the years ahead.”
Russ Mould, investment director at Manchester investment platform, AJ Bell, said: “Unilever has done a good job at increasing sales volumes, margins and cash flow, implying the business is finally getting back on top after a patchy period. A bump in the dividend and a new €1.5bn share buyback are the cherry on the cake.
“The business has beefed-up investment in brand and product marketing, and it continues to right-size the business by selling non-core brands and buying new ones.
“What’s interesting is how it has managed to do all this in an environment where many consumers are watching their spending and opting for supermarket own-label products rather than the ‘power brands’ that the likes of Unilever own. Whether this situation lasts remains to be seen. The challenge could intensify if inflation rears its ugly head and interest rates stay higher for longer.”
He added: “Unilever expects a ‘soft’ first half of 2025 with subdued market growth in the near term. That guidance has spoilt the party and reminded investors that Unilever is still at the mercy of the global economy and consumers’ ability and willingness to splash the cash.
“It is guiding for prices to go up, to offset higher commodity costs, and that will test consumers’ appetite for Unilever’s brands.
“There is now clarity on separating the ice cream division. Just like a tub of Neapolitan offering three different flavours, the ice cream arm will also be listed in three different parts of the world.
“Picking the same locations as where Unilever’s shares trade makes perfect sense. Investors in London, Amsterdam and New York are already familiar with the brands and products, so there won’t be any of the drama around inheriting shares that trade in other parts of the world as that sometimes happens with demergers.”
Shares in Unilever fell by around seven per cent in early morning trading.
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Solly Solomou
Manchester-based LBG Media, the group behind the LadBible Group online platform, is searching for a new Chief Financial Officer.
On January 22, it announced that CFO, Richard Jarvis, was taking some time away from the business for personal reasons.
The board now confirms that he has stepped down as CFO and has left the business with immediate effect.
As previously announced, Dave Wilson moved into the executive chair role on January 22, with a particular focus on supporting the finance and legal teams.
His expertise and oversight will ensure the finance function continues to operate effectively while the board identifies a new CFO to support the growth ambitions of the group. Dave has substantial financial and legal experience from a career that included 14 years as COO, CFO and Deputy CEO at Chester-based GB Group.
The board said it would like to thank Richard for the contributions he has made during his tenure and wishes him all the best in the future.
Group Chief Executive, Solly Solomou, said: “I would like to thank Richard for his commitment and support. Richard has led important initiatives to build the finance and legal functions that will support our long term growth ambitions and I wish him well for the future.”
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Andrew Mallows
Macclesfield-based multi-brand franchise business, Franchise Brands, has confirmed Andrew Mallows, the current interim chief financial officer, on a permanent basis, combining the roles of commercial director and chief financial officer. Beth Peace, who has been with the business since 2019 and is currently Finance Director in the Water & Waste Services Division, will be appointed Group Finance Director.
In a statement to the stock market this morning the company said chief executive Peter Molloy has worked with both of them for many years and that the roles of CFO and Commercial Director are being combined under the Mallows’ new role as CFO.
In addition, Mark Boxall, who was appointed as Chief Operating Officer last year, will continue to be responsible for driving integration, with a particular focus in the short term on the rollout of common group-wide IT systems.
The strengthened group finance team will also be supported by Louise George, who was recently appointed to the board as an independent non-executive director and Chair of the Audit Committee. Louise has over 20 years of board-level experience with AIM-quoted companies, including substantial experience in franchised businesses.
Andrew Mallows, CFO, said: “Since joining the Group eight years ago, I have been both CFO and Commercial Director. I now look forward to combining those two roles as CFO in the new structure that supports Peter as CEO and working with Mark as COO in executing the One Franchise Brands strategy. I am very pleased that we are continuing to develop talent from within the Group with the appointment of Beth as Group Finance Director and look forward to working closely with her in her new role.”
Stephen Hemsley, Executive Chairman, said: “I am delighted that Andrew has accepted the role of CFO on a permanent basis and with Beth’s appointment as Group Finance Director. Andrew and Beth are a proven team who have worked with Peter for many years and supported each other through periods of rapid growth and the more challenging Covid years. I am, therefore, confident that they will provide the Group with excellent financial leadership and that, in combination with Peter and Mark, we have a strong team to execute our near-term strategy of integrating the Group into one business to enhance sales, increase operational efficiency and reduce debt.”
