Unilever’s ice cream sales grew above expectations in the first half of the year in a boost to the FTSE 100 consumer goods group as it presses ahead with a spin-off of the €15 billion (€17.3 billion) division.
Sales of Magnum, Ben & Jerry’s and Cornetto rose 5.9 per cent in the first half, significantly ahead of expectations, boosted by new product launches, spells of hot weather and an overhaul of its supply chains and distribution.
The company is spinning off the division later this year as new chief executive Fernando Fernandez forges ahead with a turnaround plan that will see the company pivot away from food towards beauty and personal care.
In a half-year trading update on Thursday, the maker of Dove soap and Colman’s mustard announced it would demerge the ice cream business, which makes up 15 per cent of group sales, in November.
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Unilever will retain a stake of under 20 per cent, which it will sell down over five years to cover the costs of separation.
The new business, called The Magnum Ice Cream Company, has been operating as a stand-alone business since July 1st and is headed up by Unilever veteran Peter ter Kulve.
The volume of ice cream Unilever sold in the second quarter of the year rose 5 per cent, far ahead of an expected 1.3 per cent rise, as the company invested in new product launches such as Magnum’s Utopia range.
By comparison, personal care sales volumes rose 0.2 per cent and beauty and wellbeing rose 1 per cent, undershooting expectations. Food and home care rose 1.7 and 1.3 per cent, respectively.
Unilever has made a number of acquisitions for the personal care division this year, including the $1.5 billion (€1.3 billion) deal for men’s soap range Dr Squatch, and eco deodorant brand Wild.
Unilever’s underlying group sales rose 3.4 per cent in the first half, just ahead of the 3.3 per cent forecast by analysts. The group’s operating profit was down 4.8 compared with last year at €5.8 billion in the first half, slightly ahead of expectations.
The company confirmed its full-year organic sales growth guidance of 3 to 5 per cent. – Copyright The Financial Times Limited 2025
