Magnum Ice Cream unveils growth strategy ahead of global listing

NETHERLANDS – The Magnum Ice Cream Company (TMICC), an ice cream manufacturer, has announced that it is set to become the only global pure-play publicly listed entity in the ice cream sector, as it prepares for its upcoming demerger from Unilever.

The company will host its first Capital Markets Day (CMD) for investors and analysts in London.

During this event, TMICC management will present its business, strategy, and financial framework ahead of the planned demerger from Unilever PLC (Unilever) and standalone listing, both of which are expected to be completed by mid-November.

Jean-François van Boxmeer, Chair Designate, TMICC: “This CMD marks an important step in the demerger process from Unilever. Since taking the role of Chair Designate earlier this year, I have been inspired by the expertise and commitment of the executive team and the wider group of employees the world over.

“As the clear global leader in a growing category, The Magnum Ice Cream Company has the scale, the expertise and, most importantly, the strategy to drive an already outstanding business towards further success for all stakeholders.”

The company has a productivity program which is expected to deliver cumulative gross savings of €500m in the medium term, fuelling growth and margin expansion, driven by supply chain transformation: End-to-end network optimisation, driving a step-change in manufacturing productivity and increasing procurement efficiency, expected to deliver €350-380m in savings.

Second is overheads reduction. Lower overhead expenses as a standalone company than operating as a division through a de-layered front-line focused organisation with lean headquarters and end-to-end P&L accountability in markets is expected to result in €70-100m in savings.

Tech-enabled productivity: An efficient and fit-for-purpose tech infrastructure, scaling and leveraging Global Business Solutions, expected to achieve €30-50m in savings.

Peter ter Kulve, Chief Executive Officer & Executive Director, TMICC: “We are proud to share our strategy for The Magnum Ice Cream Company with the financial markets during our first CMD. Our global portfolio of iconic market-leading brands, world-class distribution network and track record of industry-leading innovation.

“Together with our passionate and expert people, we position ourselves perfectly to deliver unforgettable moments for the customers who love our products and value for our shareholders. Together, we will build on our heritage, drive sustainable growth and bring the joy of ice cream to even more people around the world.”

TMICC has a clear strategy to accelerate organic growth and improve productivity. The company expects to accelerate its organic sales growth through: increasing the number of ice cream occasions with market-making innovation, implementing a competitive TMICC pricing strategy across all snacking price points, international roll-out of premium brands, dynamic, digital-led demand creation, and expansion of availability across channels.

Upon demerger, Unilever will retain a <20% stake in TMICC, subject to regulatory approvals, for a period of up to five years.

Over time, Unilever will sell down its retained stake in an orderly and considered manner to cover its separation costs and maintain capital flexibility through a reduction in net debt. The retained stake demonstrates Unilever’s support and belief in TMICC.

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