Unilever Wins Overwhelming Shareholder Backing for Restructuring as Cost Savings Top 750 Million Euros

Unilever shareholders back all resolutions with over 93% approval, but shares slip to €48.88. Cost savings hit €750M early, restructuring proceeds fund €6B buybacks, and margin improvement may offer support.

The boardroom unity at Unilever’s annual general meeting on Wednesday stood in stark contrast to the fortunes of its stock. While shareholders voted through every resolution with majorities between 93% and nearly 100%, the shares continue to languish near their lows for the year, slipping to 48.88 euros after going ex-dividend. The 0.46 euro per share payout for the first quarter accounted for the 1.55% daily decline, but the broader picture remains tense: the stock has lost roughly 12% since January.

Nelson Peltz retains his seat on the board, and the remuneration report sailed through with close to 98% approval from the 73% of voting capital present. The reauthorisation of share buybacks received an almost unanimous 99.79% vote. An ongoing repurchase programme worth up to 1.5 billion euros is slated to wrap up by early July 2026, while longer-term plans foresee total buybacks of 6 billion euros between 2026 and 2029, funded by cash inflows from the restructuring.

The efficiency programme launched in 2024 is delivering far quicker results than anticipated. Of the targeted 800 million euros in annual savings, the company had already realised 750 million euros in the first quarter alone. That progress is a bright spot for a management team that is simultaneously reshaping the portfolio. After spinning off the ice cream business centred on Magnum at the end of last year, Unilever announced in March the merger of its food division with spice maker McCormick. The deal is expected to close by mid-2027, subject to regulatory clearance, and will leave Unilever as a pure-play household and personal care company. Proceeds from the transaction will help finance the share buybacks.

Operationally, the first quarter showed solid momentum. Adjusted revenue rose 3.8%, driven primarily by a 2.9% increase in volumes rather than price hikes. Core brands outperformed with 5% growth, particularly in emerging markets such as India. Management reiterated its full-year guidance, calling for adjusted revenue growth at the lower end of its target range and a slight improvement in the operating margin from last year’s 20%.

Technically, the stock is testing support near 48 euros. A break below that level could invite further selling, while any confirmation of margin improvement when half-year results are released next might help the shares find a floor. For now, the market remains unconvinced, with the equity trading just shy of both its 50-day moving average at 52.01 euros and the year’s nadir.