Unilever PLC (LSE:ULVR) announced a share buyback of up to €1.5 billion and said it will spin out its ice cream business with joint listings in Amsterdam, London and New York.
The shares fell 5.4% by mid-afternoon, with the outlook seen as somewhat cautious.
Last year saw transformation the main focus under CEO Hein Schumacher, aiming to improve the rate of growth.
His plan has been to do "fewer things, better and with greater impact", which includes selling off the Ice Cream business, which he says remains "on track" to complete by the end of 2025, with an incorporation in the Netherlands and headquarters remaining in Amsterdam.
"This decision follows a full review by the board of separation options, focused on maximising returns for shareholders, setting the Ice Cream business up for success and execution certainty by the end of 2025," the company said.
For the past year, underlying sales grew 4.2% with volumes up 2.9%, with particularly strong performances from brands such as Dove, Comfort, Vaseline and Liquid IV.
In the fourth quarter turnover of €14.2 billion was down 0.1% year on year, but underlying sales grew 4%, beating estimates of 3.9%.
Underlying operating profit grew 12.6% for the year to €11.2 billion.
With divestments of some other 'local brands', including Unox and Conimex, as well as "decisive actions" in Indonesia and China, Schumacher said he expect to see the benefits of these actions "from the second half of 2025".
"Market growth, which slowed throughout 2024, is expected to remain soft in the first half of 2025," he added, but the reshaping of the group "leave us better positioned to deliver on our ambitions in the years ahead".
Analysts at Barclays were impressed that the group delivered 2%+ volume growth every quarter in 2024, 15% EPS growth over the year and the share buyback.
"Markets are subdued and Q1-25 will be softer, but Unilever's share is improving," they added, feeling the long-term transformation is "very much on track".
Challenges still remain, they acknowledged, in Indonesia and China, though both key markets are expected to improve in the second half of 2025.
Analyst Keith Bowman at Interactive Investor said the consumer goods giant "delivered broadly inline results if a somewhat cautious outlook", though a slow start to 2025 is expected to gather momentum.
"In all, the tough economic backdrop for many of its customers globally persists. Ongoing investments in areas such as marketing, product innovation and technology are generating additional costs that put pressure on profit margins. Competitors such as Proctor and Gamble are not standing still, while elevated commodity prices will affect production costs."
** Update: Share price and broker comments added **