Unilever, the foods and detergent conglomerate, yesterday announced the formation of two global divisions, but stuck firmly to its line that the move was not a prelude to splitting into separate companies.

In the shake-up Mr Patrick Cescau, finance director, will take charge of the foods division from January 1.

Mr Keki Dadiseth, who oversaw the review of the group's top organisation this year, is to become director of home and personal care. Mr Dadiseth joined the board from Hindustan Lever, the group's Indian subsidiary in May.

The Anglo-Dutch company said the rationale was to accelerate decision-making and to strengthen the company's ability to harness innovation. "This is not a precursor to a demerger," it added.

Analysts welcomed the news, saying that the reorganisation made sense given the pressures on the business and that it would allow Mr Niall Fitzgerald and Mr Antony Burgmans, the co-chairmen, to focus on strategy.

Analysts added that a demerger of the two businesses would be unlikely in the short-to-medium term due to the company's ambitious "path to growth" strategy.

That plan involves cutting 25,000 jobs, introducing steep growth targets and focusing on 400 key brands. Unilever is also digesting the $20.3 billion (€22.45 billion) acquisition of Bestfoods, the largest takeover in the global foods industry for 12 years.

Mr Fitzgerald said: "The business has continued to evolve making this review of our structures timely."

Yesterday's news of the reorganisation came as the company reported its half-year results which saw pre-tax profits down 9 per cent to €1.88 billion ($1.7 billion), at constant exchange rates. Profits were affected by restructuring costs of €200 million in the second quarter.

Sales were up by 2 per cent for the half year to €20.61 billion while operating profit was down 3 per cent at €1.93 billion and earnings per share were down 1 per cent to €1.17. But second-quarter sales, up by 3 per cent, signal an upward trend.