Unilever rises after abandoning ‘virtue signaling’ agenda

Unilever’s sales have soared thanks to a turnaround plan that has moved the company away from its ‘virtue-signaling’ woke agenda.

The consumer goods giant – whose brands include Magnum ice cream, Dove soap and Hellmann’s mayonnaise – said sales rose 4.5 percent in the three months to September 30.

The FTSE 100 group said the volume of goods sold rose while price increases weakened. Shares rose 2.9 percent, or 137p, to 4,790p, following a vote of confidence in chief executive Hein Schumacher’s revival mission.

Schumacher said the group was “beginning to see the positive impact” of its strategy, which includes a focus on “doing fewer things, better.”

The Dutchman, who took over from Alan Jope in July 2023, has vowed to stop ‘forcing’ social justice messaging onto brands, describing it as a ‘distraction’ for some products.

Investors had strongly criticized the business community for the idea that the group should prioritize doing good in the world over making a profit.

Fund manager Terry Smith accused the company of ‘virtue signalling’ after it claimed Hellmann’s mayonnaise had a social purpose.

Schumacher also plans to spin off the group’s ice cream and save around £700 million with 7,500 job cuts.

The ice cream division, which includes Wall’s, Ben & Jerry’s and Magnum, was one of the best performers in the third quarter, with sales up nearly 10 percent.

Unilever attributes this to ‘strong innovations’, such as bite-sized offers from Magnum and Ben & Jerry’s.

Unilever remained tight-lipped about the future of the unit, which could be listed on the stock exchange in London, New York or Amsterdam.

With inflation slowing, Unilever said goods prices were only 0.9 percent higher in the third quarter than a year earlier, compared to a 1 percent annual increase in the second quarter.

At the peak of the cost of living in late 2022, prices rose 13.3 percent year-on-year.

AJ Bell investment director Russ Mold said Schumacher has made “real progress with the business” since taking over, adding: “This is based on improved product innovation but also on slowing price increases.”

Chris Beckett, head of equity research at Quilter Cheviot, said Unilever has ‘continued its good run of results’, adding: ‘The momentum generated in recent months will continue as the company transforms itself. Unilever remains on the road to recovery.’