Unilever reports increased ice cream sales despite decline in profit margins
Unilever, the multinational consumer goods company, has announced plans to spin off its ice cream arm, The Magnum Ice Cream Company (TMICC), creating a separate, publicly-traded entity. The spin-off, which was completed operationally on July 1, 2025, is set for a primary listing on the Amsterdam Stock Exchange in mid-November 2025 [1][3][4].
TMICC will encompass Unilever's iconic ice cream brands such as Ben & Jerry’s, Magnum, Breyers, and Wall’s, marking a significant step towards focusing on growth and unlocking shareholder value [1]. Unilever will initially retain a stake of less than 20% in TMICC for up to five years after the Initial Public Offering (IPO) [3].
In India, TMICC will acquire a 61.9% stake in Kwality Wall’s, with a concurrent demerger of Kwality Wall’s expected to complete by the end of the financial year 2025-26 (March 31, 2026). Eligible Unilever shareholders will receive one share of Kwality Wall’s for each Unilever share held on the record date for this demerger [2].
Unilever's CEO, Fernando Fernandez, anticipates further acceleration in emerging markets, particularly in Asia, and sustained momentum in developed markets for the rest of the year [5]. The company is also prioritising more focus on Beauty & Wellbeing and Personal Care, disproportionate investment in the US and India, and a sharper focus on premium segments and digital commerce [6].
However, investors should consider ongoing legal challenges related to Ben & Jerry’s as part of the broader risk profile [1].
The spin-off comes as Unilever reports a 5.9% increase in TMICC's turnover to €4.6bn for the year, but a 2.2% drop in underlying operating profit [5]. The company's overall turnover for the year was €30.1bn, a decrease of 3.2% compared to the previous year [7].
Unilever's productivity plan, aimed at delivering €650m of savings by the end of 2025 and an additional €150m in 2026, remains on track [6]. The company's focus on productivity savings is evident in the restructuring costs from the plan, which were €239m for the first half of the year, a slight decrease from €248m in the prior year [7].
Sources: [1] AInvest (Jul 10, 2025) – Unilever's Ice Cream Gamble [2] Economic Times (Jul 30, 2025) – Kwality Wall’s Demerger Plans [3] AInvest (Jul 31, 2025) – Unilever Q2 Sales and Spin-off Details [4] TipRanks (Jul 31, 2025) – Magnum Ice Cream Company Listing Plans [5] AInvest (Aug 15, 2025) – Unilever's Ice Cream Arm Reports Growth and Drop in Profit [6] Financial Times (Aug 20, 2025) – Unilever's Future Focus: Beauty, Premium Segments, and Digital Commerce [7] Unilever Q1 2025 Financial Report (Feb 1, 2025)
The spin-off of The Magnum Ice Cream Company (TMICC) from Unilever, a multinational consumer goods company, is set to create a new player in the finance industry, with a primary listing on the Amsterdam Stock Exchange. TMICC, which will encompass Unilever's iconic ice cream brands, is expected to attract further business not just in developed markets but also in emerging markets, particularly Asia, as per Unilever's CEO, Fernando Fernandez.
