Unilever ice cream sales climb as demerger nears completion

Unilever’s soon to be independent ice cream business registered robust growth in the first half of the year, driven by strong demand for brands such as Magnum, Ben and Jerrys, and Cornetto. The company’s ice cream division posted a 5.9 per cent growth in underlying sales, outpacing the broader group and reinforcing investor interest ahead of its planned demerger by mid November.

The FTSE 100 consumer goods group reported underlying sales growth of 3.8 per cent in the most recent quarter, reaching 15.4 billion euros. This result surpassed analysts expectations and improved upon the previous quarter’s figures. The ice cream division accounted for much of this momentum as the rest of the business saw more muted performances. Personal care grew by 4.8 per cent, beauty and well being by 3.4 per cent, while food and home care rose by just 2.2 per cent and 1.3 per cent, respectively.

Underlying operating profit for the first six months of the year slipped by 4.8 per cent to 5.8 billion euros, with margins reduced by 30 basis points to 19.3 per cent. Despite this drop, Unilever’s ice cream business—generating more than 8 billion euros annually—has begun trading as a standalone entity from July and is on course to debut on the Amsterdam stock exchange as the newly named Magnum Ice Cream Company. The business will also maintain secondary listings in London and New York, with Unilever expected to retain a stake of no higher than 20 per cent after the demerger.

Unilever has undergone significant changes in recent years, seeking to close the gap in performance with sector leaders such as Nestle and Procter and Gamble. Hein Schumacher’s tenure as chief executive brought a concentrated focus on the company’s main brands, boosting profitability and free cash flow. The firm has since transitioned to new leadership under Fernando Fernandez, with operational separation of its ice cream unit declared complete and competitive performance said to be improving.

With a portfolio spanning Dove deodorant, Hellmanns mayonnaise, and Knorr stock cubes, Unilever continues to reorganise to unlock value. Its strategic recalibration has been keenly watched by the market, especially as the group’s share price has lagged rivals. The upcoming listing of its ice cream business marks a significant moment for both the company and the European consumer sector as Unilever advances one of the largest spin offs in its history.