LONDON — Unilever is doubling down on its commitment to beauty, well-being and personal care, which it sees as key growth engines in a market that’s prioritizing experiences and self care.

Chief executive officer Fernando Fernandez told the Barclays Global Consumer Staples Conference this week he expects two-thirds of sales to come from beauty and personal care in the medium term, according to media and analyst reports. Beauty and personal care currently generate around 51 percent of sales.

Jefferies speculated that Unilever would need more than 15 billion euros in “acquired sales” from future acquisitions, or organic growth of around 9 percent per year, to reach its goal in seven years. “We assume it will be a hybrid of these routes,” Jefferies said in its drill-down of Fernandez’s talk.

Unilever’s beauty and well-being division is valued around 13.2 billion euros, and includes “power brands” such as Dove, Vaseline, Nutrafol, Liquid I.V. and Paula’s Choice. Unilever is increasingly focusing on its 30 largest brands, which generate more than 70 percent of turnover.

According to the Jefferies report, Unilever also plans to put focus on the U.S. and India, as well as on premiumization and e-commerce acceleration.

In terms of acquisitions, Fernandez said that “not a penny” will be spent outside of the U.S. and India, which prompted Jefferies to speculate that Unilever’s acquisition of the U.K. natural deodorant brand Wild “is the last of its nature.”

As reported, Unilever purchased Wild in April for an undisclosed sum. The brand was founded in 2020, offering deodorant in reusable aluminum cases and biodegradable refills. It subsequently expanded its range to include body wash, hand wash and lip balms, all with refillable packaging.  

Fernandez’s comments at Barclays were similar to those he made during Unilever’s first-half results presentation on July 31.

“Looking ahead, our priorities are clear: more beauty and well-being and personal care; disproportionate investment in the U.S. and India, and a sharper focus on premium segments and digital commerce,” he said.

“We are building a marketing and sales machine that drives desire at scale in our power brands and ensures execution excellence across all channels, to deliver consistent volume growth and gross margin expansion,” the CEO added.

In the half, well-being delivered strong double-digit growth for the 21st consecutive quarter, with performance led by Liquid I.V. and Nutrafol. Unilever said both brands continued to expand household penetration and deliver successful multiyear innovations, such as Liquid I.V.’s sugar-free platform.

Prestige beauty was flat as the market remained subdued. Hourglass, Tatcha and K18 continued to grow in the double digits, while Paula’s Choice and Dermalogica declined.

Underlying operating profit in prestige beauty was 1.3 billion euros, down 3.7 percent versus the prior year as the company increased brand and marketing investment behind key innovations and market development.

During the Barclay’s conference, Fernandez also said Unilever plans to review its top 200 management roles as part of the wider operational and organizational changes the consumer giant announced in July 2024.

As reported, Unilever has set out plans to slash 7,500 office-based roles globally and achieve total cost savings of around 800 million euros over three years.

As part of that plan, Unilever is aiming to cut a third of all office roles in Europe by the end of 2025, or around 3,200 jobs.

Fernandez did not specify which roles were under review, and Unilever declined to comment on his address at the Barclays conference.

A key role has yet to be filled. As reported, Priya Nair left as president of Unilever’s beauty and well-being division, and took up the CEO and managing director role at Hindustan Unilever Ltd. last month. She has not yet been replaced.

Last fall, Mary Carmen Gasco-Buisson took over as CEO of Unilever’s Prestige beauty division, succeeding Vasiliki Petrou, and reporting to Nair.

As part of its growth drive in beauty and well-being, Unilever opened its first U.S. fragrance lab, located within Unilever’s existing Trumbull, Connecticut Research & Development facility, on July 23.

The lab is part of Unilever’s previously announced 100 million euros global investment to boost its in-house fragrance capabilities. In the U.S., it plans to bring together top perfumers, scientists and developers in a digital-first, collaborative space to accelerate the creation of “unique scent experiences.”