Dec. 9 at 4:46 PM
Unilever plans to allocate roughly
$1.74 billion annually to M&A, with as much as 95% focused on the U.S. market, CEO Fernando Fernandez said at a JPMorgan event. He highlighted that following the separation of the company’s ice cream division, Unilever’s operating margin is expected to reach at least 19.5%, compared with the previous 18.5% when ice cream was included.
The ice cream spinoff was finalized on Monday, with The Magnum Ice Cream Company beginning trading on the Amsterdam exchange. Fernandez added that nearly 60% of Unilever’s capex is now directed toward initiatives aimed at expanding margins, reflecting a sharper strategic focus on profitability. He also emphasized that the company will not retain excess cash and intends to keep returning capital to shareholders through share buybacks whenever liquidity allows.
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