The Magnum Ice Cream Company (TMICC) has completed its demerger from Unilever, and its shares will begin trading on stock exchanges in London, Amsterdam and New York when the respective markets open today.
Unilever still owns a 20% stake in TMICC, which it plans to sell down to 0% over the next five years.
TMICC is the largest ice cream business in the world, with brands like Magnum, Ben & Jerrys, Wall’s and Cornetto in its portfolio.
The company has debuted with a market value of around €7.9bn (£6.9bn).
The shares rose 3.0% in early trading.
Our view
The Magnum Ice Cream Company (TMICC) completed the final step in its spin-off from Unilever, with the ice cream business now being valued at around £6.9bn (Unilever: £105bn). This shouldn’t cause any major disruption to everyday operations, given TMICC’s already been operating as a standalone entity since 1 July 2025.
TMICC 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. TMICC 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 two-thirds of the group’s sales in 2024. 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 TMICC can nail its execution in these regions.
TMICC is already 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. This could cause some downward pressure on the share price in the near term, as some investment funds that hold Unilever may be forced to sell their TMICC shares to abide by their large-cap, dividend-paying investment mandate.
Overall, we view TMICC as a strong business with a dominant market share. The long-term picture looks favourable. If the group can deliver operational improvements as expected, and marketing investments land well in emerging markets, there could be a long runway of growth ahead. But one-off separation costs, execution risks, and selling pressures are likely to weigh on sentiment in the near term.
The Magnum Ice Cream Company key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
