Unilever Exceeds Sales Estimates, with Ice Cream Division Sector Performing Exceptionally Well
Unilever, the multinational consumer goods company, is set to spin off its ice cream business in a move aimed at boosting growth and improving margins. The new company, named The Magnum Ice Cream Company, has been operating as a standalone entity since July 1, 2025, under the leadership of Unilever veteran Peter ter Kulve.
The spin-off, scheduled for mid-November 2025, will see the new company listed primary on the Amsterdam stock exchange in the Netherlands. The move values the ice cream business at approximately €15 billion, reflecting its significant market position despite Unilever's previous struggles with this unit.
The ice cream business has been a bright spot for Unilever, with underlying sales rising by 7.1% in the second quarter. Innovation, such as the launch of the Magnum Utopia range, has been cited as a driver for this growth. Europe and North America have been robust for Unilever's half-year performance, with the ice cream business being the fastest growing category.
However, Unilever has faced challenges in other areas. The company missed first-half sales volumes targets and reported a 50% drop in free cash flow from last year to €1.1 billion due to supply chain changes, tariff uncertainties, and costs associated with spinning off the ice cream division.
In an effort to address these issues, Unilever has made organizational and operational changes over the past year. Job cuts and a change in CEO are among these changes. The company's half-year performance has been driven by brands such as Dove bodywash, Liquid IV electrolyte mix, and Wonder Wash detergent.
Despite these challenges, Unilever has beaten forecasts for second-quarter underlying sales growth. The company's half-year sales outlook remains steady. Unilever's CEO, Fernando Fernandez, stated that the company's performance in the US is showing that the model of deploying investment is working well.
Meanwhile, Procter & Gamble has warned of annual results falling below expectations. Unilever will retain a less than 20% stake in The Magnum Ice Cream Company for up to five years.
In conclusion, Unilever's spin-off of its ice cream business marks a significant step in the company's ongoing reorganization efforts. The move is expected to allow The Magnum Ice Cream Company to focus on growth as an independent entity, while Unilever continues to streamline its operations and focus on its core brands.
[1] Source: Unilever Press Release, July 1, 2025. [2] Source: Amsterdam Stock Exchange Announcement, August 1, 2025.
The spin-off of Unilever's ice cream business, The Magnum Ice Cream Company, is set to be listed on the Amsterdam stock exchange, reflecting the significant market position and growth potential of the food-and-drink sector. The move allows the new company to focus on investment and growth opportunities in the lifestyle industry, while Unilever concentrates on improving its core business and finance strategies.
