The Magnum Ice Cream Company (TMICC) has made a sweet debut on the stock market, kicking off a new chapter as a global ice cream powerhouse. This move has been a long time coming, with the demerger from its parent company, Unilever, finally taking place after some delays.
TMICC is now the world's largest independent ice cream manufacturer, boasting a 21% share of the global market. That's nearly double the market share of its closest competitor, Froneri, which focuses on both branded and private-label ice cream. TMICC, on the other hand, has a laser-like focus on its well-known branded products like Wall's, Cornetto, and Ben & Jerry's.
With a revenue of €7.95 billion ($9.26 billion) in the previous year, TMICC has outperformed Froneri's €5.53 billion. Under the leadership of CEO Peter ter Kulve and finance chief Abhijit Bhattacharya, the company has set an ambitious medium-term organic sales growth target of 3-5% annually, which is higher than the historical average of 3% achieved under Unilever's umbrella.
"We're excited to embark on this new journey," said ter Kulve. "TMICC will be more agile, focused, and ambitious than ever. We have a clear strategy to drive growth, improve productivity, and reinvest in our business. With our iconic brands and world-class capabilities, we aim to lead the frozen snacking revolution, creating innovative products and experiences that delight ice cream lovers worldwide."
TMICC's shares have shown positive momentum in early trading on the London and Amsterdam exchanges. As of a recent filing, the company's valuation stood at $9.2 billion in Amsterdam.
For now, Unilever retains a 19.9% stake in TMICC, but this interest will gradually decrease over the next five years. TMICC plans to increase its focus on advertising and promotional spending, with sales currently weighted towards developed markets, accounting for 65% of total revenue, compared to 35% for emerging markets.
The company aims to allocate 13% of its group revenues towards advertising and promotional expenses (A&P) from 2026 onwards, which is a significant increase from the relatively flat investment of 12.4% last year and 12.3% in 2023. TMICC also has a healthy €3 billion in its coffers from a bond sale in November, which will be used for general corporate purposes and to finance the demerger.
Barclays' analysts, led by Warren Ackermann, believe that TMICC, as a standalone entity, will have more freedom to allocate capital and tailor its innovation strategies to the unique dynamics of the ice cream category. They estimate a "bull case scenario" of 4.5% growth from 2026 onwards.
"TMICC's future looks bright as it can now focus solely on its ice cream business without being constrained by Unilever's broader portfolio priorities. This independence will allow TMICC to make more precise capital allocations and innovate at a pace that suits the ice cream market," Ackermann's team wrote.
CEO ter Kulve has hinted that there's room for improvement within the ice cream business, emphasizing the importance of e-commerce as a key growth channel to complement retail and out-of-home sales. He believes TMICC's portfolio is well-positioned for superior growth, with strong brands, leading capabilities, and good geographic positions.
CFO Bhattacharya also highlighted that Unilever had been losing global ice cream volumes for a decade but saw a turnaround last year. He believes that driving volume growth will lead to margin expansion, addressing the issue of declining margins.
TMICC has implemented a €500 million productivity plan until 2028, with €70 million already delivered last year. The plan focuses on supply chain optimization, overhead reduction, and technology-enabled productivity improvements in manufacturing.
The company has divided its geographical operations into three divisions: the Americas, Europe/Australia/New Zealand, and Asia/Middle East/Africa. Based on last year's performance, the Americas and Europe/ANZ generated revenue of €3 billion each, with market positions of 19% and 31%, respectively. AMEA commanded 11% of the market, valued at €2 billion.
In terms of leadership, Jean-François van Boxmeer serves as the chairman, bringing extensive experience from senior roles at Vodafone, Heineken, and Henkel. The board also includes seven non-executive directors: Stacey Cartwright, René Hooft Graafland, Melissa Bethell, Stefan Bomhard, Anja Mutsaers, Reginaldo Ecclissato, and Josh Frank.
TMICC's financial performance has been promising, with organic sales growth of 2% in 2024 and maintaining the same rate in the first half of the 2025 fiscal year. Volume growth, however, slowed to 1% in the first six months of this year, compared to 2% in the full year 2024. The adjusted EBITDA margin has improved, increasing by 134 basis points last year and another 100 points in H1 2025.
Revenue for the previous year was reported as €7.95 billion, up from €7.62 billion in the prior period. Adjusted operating profit climbed to €964 million from €854 million, with the margin rising to 12.1% versus 11.2%. Adjusted EBITDA increased to €1.34 billion from €1.21 billion, and the EBITDA margin improved to 16.9% from 15.9%.
As TMICC continues its journey as a standalone entity, questions arise about the future of other food assets within the Unilever portfolio. There have been speculations that Unilever might follow a similar path with its other consumables brands, focusing more on beauty, personal care, and home care.
Reuters recently reported, citing unnamed sources, that Unilever is considering selling food brands like Marmite, Colman's, and Bovril. Last week, the company sold its UK snacks business, Graze, to Katjes International.
"We believe TMICC's future as a pure-play ice cream company is brighter than being part of Unilever, which has other priorities. The ice cream separation should be seen as a step towards Unilever becoming a higher-growth, higher-margin business with a more focused approach to resource allocation," Ackermann's team concluded.
What do you think about TMICC's future prospects? Do you agree that its independence will lead to greater success, or do you see potential challenges ahead? Feel free to share your thoughts in the comments!
