Unilever(UK)(US:UL) Xin Lang Cai Jing·2025-12-10 06:18Core Viewpoint - Unilever has officially completed the spin-off of its ice cream business, establishing The Magnum Ice Cream Company, which has been listed in Amsterdam, aiming to streamline operations and focus on core business areas to boost performance growth [2][18]. Group 1: Business Performance and Strategic Shift - The ice cream division of Unilever has seen an average annual sales growth of less than 3% over the past two years, significantly lagging behind the beauty and health division, which has grown by over 7% during the same period [4][20]. - The ice cream business, accounting for about 16% of Unilever's sales, has been a drag on overall performance, especially as the company has prioritized faster-growing categories like beauty and personal care [4][20]. - The operational model of the ice cream segment, characterized by cold chain logistics, seasonality, and capital intensity, has made it difficult to achieve synergies with Unilever's other core businesses [4][20]. Group 2: Political and Operational Challenges - The ice cream business has also been a source of political controversy, particularly with the Ben & Jerry's brand, which has had public disputes with Unilever's management over various social issues [5][21]. - The spin-off is seen as a way to shed these non-operational disputes and allow Unilever to focus on its core operations without the burden of the ice cream segment [5][21]. Group 3: Strategic Actions and Future Plans - Unilever's recent strategic shift has been influenced by shareholder demands for business simplification, particularly after a failed attempt to acquire GSK's consumer health business for £50 billion [5][21][22]. - The company has announced a "Growth Action Plan" (GAP) aimed at streamlining operations, which includes the elimination of approximately 7,500 jobs to save around €800 million [6][22]. - Following the spin-off, Unilever will reduce its business segments from five to four, focusing on beauty and health, personal care, home care, and nutrition [6][22]. Group 4: Spin-off Details and Market Position - The spin-off of the ice cream business has been a long-anticipated process, with the ice cream division restructured as an independent entity and officially listed on December 8, 2023 [7][23]. - The spin-off was executed through a demerger, allowing existing Unilever shareholders to receive shares in the new company without issuing new stock [7][23][25]. - The new company, The Magnum Ice Cream Company, is positioned as the world's largest pure ice cream enterprise, with operations in 80 countries and an estimated revenue of €7.9 billion for 2024 [10][26]. Group 5: Market Reception and Future Challenges - The initial valuation of The Magnum Ice Cream Company is estimated to be between €14 billion and €15 billion, reflecting a conservative market outlook due to its slow growth and single-category focus [10][26]. - The company has received strong interest in its bond issuance, indicating potential investor confidence, but faces challenges from the rising trend of health-conscious consumption and the impact of weight-loss drugs on high-calorie products [11][27][28]. - The new management plans to redefine ice cream in the health-conscious market, aiming to introduce lower-calorie options and expand into high-protein categories to adapt to changing consumer preferences [30][31].