Unilever’s Ice Cream Spin-Off Fails to Lift Stock Despite Growth Forecasts

Unilever's shares declined despite optimistic projections for its soon-to-be-demerged ice cream division, which includes powerhouse brands like Magnum, Ben & Jerry's, and Wall's. The consumer goods giant anticipates 3-5% organic sales growth for the new entity, Magnum Ice Cream Company, starting in 2026. With a 20% retained stake, Unilever plans to list the spin-off on the Amsterdam exchange in mid-November.

The ice cream unit, commanding 21% of the $88 billion global market, reported €7.9 billion in 2024 revenue and €1.2 billion in adjusted EBITDA. Recent innovation-driven sales boosts—including Magnum's 'Utopia' range and Cornetto disc cones—fueled 7.1% Q2 growth. Yet investor skepticism persists, overshadowing operational successes as Unilever navigates the competitive landscape against Nestlé's Froneri.