Unilever’s Decoupling Focused on Magnum: 3-5% Growth Expectation

Unilever’s ice cream unit, led by Magnum, which it is preparing to split, forecasts an average annual 3-5% organic sales growth from 2026 onwards. The new company will include Magnum, Ben & It will encompass brands like Jerry’s and Wall’s and control more than 20% of the global ice cream market, worth approximately $88 billion, competing with rivals such as Nestlé-backed Froneri.

The spin-off, scheduled for mid-November, will be a major test as Unilever retains less than 20% of the shares. This move is central to CEO Fernando Fernandez’s strategy to simplify the company, increase efficiency, and raise profit margins.

The ice cream division generated €7.9 billion in revenue and €1.2 billion in adjusted EBITDA in 2024.

Although it was Unilever’s fastest-growing category with a 7.1% sales increase in the second quarter, it operates with lower margins compared to other areas. This decoupling is part of Unilever’s effort to strengthen its growth and efficiency targets with a more focused product portfolio. Similarly, Keurig Dr Pepper and Nestlé are also taking steps to reshape their portfolios.

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