(Feb 12): Magnum Ice Cream Co shares fell as much as 16% in Amsterdam after the former Unilever plc unit disappointed investors with a large drop in operating profit last year.
The group, which owns brands including Ben & Jerry’s, Magnum and Cornetto, said operating profit fell from €764 million to €599 million last year, hit by costs linked to its separation from Unilever and currency headwinds as the euro strengthened against the dollar and Turkish lira.
Shares of Magnum had risen around 26% since the listing in December before Thursday’s fall.
This is the first set of results for the company after its demerger from Unilever and independent listing at the end of last year. Part of the rationale for the split was that Magnum, the world’s biggest ice cream maker, could spur greater growth and lift volumes and margins once freed from Unilever.
Magnum’s profit decline followed cash outflows of €564 million last year related to the demerger and came on revenue that was largely flat. Its guidance of 3% to 5% organic sales growth in the current fiscal year is in line with expectations.
The headline numbers “do not read well,” said David Hayes, analyst at Jefferies, who pointed to risks of demand lowering as more people around the world start taking weight-loss GLP-1 drugs.
“Volumes here is key, with the risk that GLP-1 structural concerns builds a theme,” he said. Magnum reported volume growth of 1.5% in 2025.
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Former parent Unilever also reported result on Thursday, posting better-than-expected sales at the end of last year, boosted by premium beauty and home care products in key emerging markets including India and China.
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