MICC reported first-quarter revenue of €1.8bn, reflecting underlying sales growth of 4.5%. This was driven by volume and price growth of 2.9% and 1.6% respectively.
Sales across all regions were in growth territory, with Africa, Middle East & Asia (AMEA) growing at the fastest pace, up 7.9%.
Full-year guidance was reiterated, with underlying sales expected to grow by 3-5%. Underlying cash profit margins are also expected to improve by 0.4-0.6 percentage points.
The shares rose 11.1% in midday trading.
Our view
The Magnum Ice Cream Company (MICC) started the year off well, with all regions in growth territory over the first quarter. Underlying sales growth is already tracking at the top end of its full-year guidance heading into the key summer season, so markets reacted very positively on the day.
MICC is the largest ice cream business in the world, with iconic brands like Magnum, Ben & Jerry’s, Wall’s and Cornetto in its portfolio. It currently holds a 21% share of global ice cream sales, nearly double that of its largest competitor, Froneri.
The global ice cream market is forecast to grow by 3-4% annually until at least 2029. MICC is targeting growth slightly ahead of this pace, up to 5% annually, driven by increased marketing investment, improved distribution channels and market share gains.
The near-term focus is likely to be on improving operational efficiencies as it steps away from Unilever and begins to stand on its own two feet. The group’s hoping to trim around €500mn of costs through streamlining its operations and simplifying its supply chains.
Developed markets like Europe and the US remain its main regions, accounting for around three-quarters of the group’s sales in 2025. Performance is likely to remain seasonal, with higher consumption of its products in the warmer summer months of the northern hemisphere.
Less developed markets account for the remainder of its sales. While it’s a smaller slice of the pie currently, it contributes a disproportionately large portion of profits thanks to its exposure to higher-priced and higher-margin products. With such a huge untapped customer base, it’s where we see the biggest growth opportunity if MICC can nail its execution in these regions.
Despite paying some hefty separation costs to Unilever, MICC remains free cash flow positive and profitable in its own right. The balance sheet is in decent shape, but dividends are off the cards until 2027 as the group finds its footing as a standalone business.
Overall, we view MICC as a strong business with a dominant market share. There’s a big long-term opportunity if the group can streamline operations, and its brand investments land well in emerging markets. At face value, the valuation looks attractive compared to peers. But there’s no guarantee of success. One-off separation costs and execution risks are likely to weigh on sentiment in the near term.
The Magnum Ice Cream Company key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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