Magnum’s Sugar Rush Ends as GLP-1 Fears Return - Moby THE GIST Magnum’s first results as a standalone company were meant to showcase the sweet logic of Unilever’s spin-off. Instead, a 3% fourth quarter volume decline and a near halving of annual profit sent the shares sharply lower and put weight-loss drugs back at the centre of the investment debate. WHAT HAPPENED Magnum Ice Cream Company reported its first full-year results since its December demerger from Unilever, and the headline numbers disappointe ...

The Magnum Ice Cream Company’s chief executive has emphasised a priority to accelerate volume and “competitive growth” in its first full year as a separate business to Unilever. Despite notching up a 4.2% increase in organic sales in 2025, TMICC CEO Peter ter Kulve stuck with the 3-5% growth outlook for the new year, although the top-end would exceed the current market category rate of 3-4%. Addressing analysts today (12 February) on his first full-year results call since the December split from the FMC ...

Core Insights - TMICC reported stable operational performance in 2025 with sales of €7.9 billion, organic sales growth of 4.2%, and volume growth of 1.5% [2][5][7] - The company successfully completed its demerger from Unilever, establishing itself as an independent entity listed on multiple stock exchanges [5][31][40] Financial Performance - Revenue remained flat at €7.9 billion compared to FY 2024, with reported revenue growth declining by 0.5% due to foreign exchange translation effects [3][5][8] - Operating profit decreased to €599 million from €764 million, primarily due to increased separation and restructuring costs [5][10] - Adjusted EBITDA was €1,255 million with a margin of 15.9%, down from 16.9% in FY 2024, impacted by foreign exchange and transitional service agreement costs [11][12] - Free Cash Flow dropped significantly to €38 million from €803 million in FY 2024, largely due to cash outflows related to the demerger [12][14] Market and Brand Performance - All regions contributed to organic sales growth, with Europe & ANZ growing by 3.3%, Americas by 0.8%, and AMEA by 10.9% [7][46][53] - Key brands such as Magnum, Ben & Jerry's, Cornetto, and The Heartbrand were significant growth drivers, with multiple new product launches [2][13][8] - Digital commerce emerged as the fastest-growing channel, achieving double-digit growth [9] Strategic Initiatives - The company is focused on executing a growth strategy that includes expanding consumption occasions, unlocking productivity through a €500 million savings program, and reinvesting in brand development [21][22][28] - The productivity program delivered €180 million in savings in 2025, with cumulative savings reaching €250 million [28] Future Outlook - For 2026, TMICC anticipates organic sales growth of 3% to 5% and an improvement in adjusted EBITDA margin by 40 to 60 basis points [19] - The ice cream market is expected to grow between 3% and 4% in 2026, indicating a resilient market environment [19]

Core Insights - The company reported stable revenue of €7.9 billion for FY 2025, with a slight decline of 0.5% in reported revenue growth compared to FY 2024, primarily due to foreign exchange translation effects [3][6][8] - Organic sales growth was strong at 4.2%, driven by a volume growth of 1.5% and price growth of 2.6%, indicating robust demand for the company's products [4][6][7] - The company successfully completed its demerger from Unilever, establishing itself as an independent entity listed on multiple stock exchanges [6][24][30] Financial Performance - Operating profit decreased to €599 million from €764 million in FY 2024, largely due to increased separation and restructuring costs [6][10][12] - Adjusted EBITDA was €1,255 million, with a margin of 15.9%, down from 16.9% in FY 2024, impacted by foreign exchange effects and transitional service agreement costs [11][12][17] - Free cash flow significantly dropped to €38 million from €803 million in FY 2024, primarily due to cash outflows related to the demerger and restructuring [12][13] Brand and Market Performance - The company's leading brands, including Magnum, Ben & Jerry's, Cornetto, and the Heartbrand, were key growth drivers, with significant new product launches contributing to organic sales growth [4][8][14] - All regions contributed positively to organic sales growth, with AMEA showing the highest growth at 10.9%, while the Americas experienced a modest 0.8% growth [7][37][43] - The company focused on enhancing its market presence through digital commerce and improved availability in various channels, leading to share gains in key markets [5][9][40] Strategic Initiatives - The company is implementing a €500 million productivity program aimed at enhancing supply chain efficiency and reducing overhead costs, which delivered €180 million in savings in 2025 [22][19] - Future growth strategies include expanding consumption occasions through innovative products and enhancing brand presence across various market segments [19][20] - The company anticipates organic sales growth of 3% to 5% for 2026, along with an expected improvement in adjusted EBITDA margins [18][7]

Core Viewpoint - The Magnum Ice Cream Company (MICC) is rated as a buy due to its strong brand portfolio, significant scale, and structural advantages in the global ice cream market [1] Company Analysis - MICC possesses the strongest brand portfolio in the global ice cream sector, which positions it favorably against competitors [1] - The company benefits from significant scale, allowing for operational efficiencies and market reach [1] - Structural advantages contribute to MICC's competitive edge, enhancing its long-term growth potential [1] Investment Strategy - The investment approach emphasizes value investing principles, focusing on acquiring quality companies at a discount to their intrinsic value [1] - The strategy aims for long-term growth by holding investments to allow for compounding of earnings and shareholder returns [1]

Core Insights - HCLTech has formed a multi-year partnership with The Magnum Ice Cream Company to develop a future-ready IT infrastructure, utilizing its AI Force platform to integrate AI into TMICC's digital framework [1][4]. Group 1: Partnership Details - The partnership aims to transition TMICC from AIOps to a NoOps operating model, facilitating zero-touch automation and fully autonomous IT operations [2]. - HCLTech's solutions will enhance predictive analytics, business process observability, and user experience, ensuring scalable and resilient IT operations globally [2][4]. Group 2: Strategic Importance - The collaboration is crucial for TMICC as it evolves into an independent listed company, focusing on infusing intelligence into its digital foundation [3]. - HCLTech's expertise will support TMICC in navigating the Transition Service Agreement exit from Unilever and establishing a greenfield IT infrastructure [4][5]. Group 3: Company Profiles - HCLTech employs over 226,300 people across 60 countries, with consolidated revenues of $14.5 billion for the year ending December 2025, specializing in AI, digital, engineering, cloud, and software services [6]. - The Magnum Ice Cream Company, the largest ice cream company globally, generated €7.9 billion in revenue in 2024 and operates a fleet of 3 million freezers across over 80 countries [7].

Company Overview - Magnum Ice Cream Company N.V. (NYSE:MICC) was spun off from Unilever PLC's Ice Cream division on December 6, 2025, with shareholders receiving one MICC share for every five Unilever shares or American Depositary Shares [1] - The company includes well-known brands such as Ben & Jerry's, Cornetto, and Magnum, making it the largest ice cream company globally, with nearly €8.0 billion in revenue in 2024 and approximately 21% market share in the global retail ice cream market [3] Shareholder Structure - Following the spin-off, remaining shareholders will hold 80.1% of MICC, while Unilever Group will retain approximately 19.9% of the stake, which it plans to sell over time to fund transaction costs and enhance capital flexibility [2] Stock Performance and Analyst Ratings - Since its listing, MICC's stock has increased nearly 6%, with Kepler Capital analyst Karel Zoete setting a price target of €16.30, indicating a 3% upside potential while maintaining a Buy rating [4] - Goldman Sachs analyst Sam Darbyshire initiated coverage with a Neutral rating and a €16 price target, citing limited upside unless the company improves its margins [5] Management Outlook - MICC's CEO Peter Ter Kulve expressed optimism about future growth, emphasizing a clear strategy to enhance productivity and reinvest in the company, aiming to lead the frozen snacking revolution and create value for shareholders [5]

Core Viewpoint - Ben & Jerry's co-founder Ben Cohen has accused Magnum Ice Cream Company of using manipulative tactics to undermine the brand's social mission, particularly its support for Palestinians during the Gaza conflict, following Unilever's spin-off of its ice cream brands into Magnum [1][3][11]. Company Actions - Unilever, which acquired Ben & Jerry's in 2000, recently spun off its ice cream brands, including Ben & Jerry's, into a new entity called Magnum [1][12]. - Ben & Jerry's CEO Jochanan Senf updated the board's terms, introducing a nine-year term limit that led to the ousting of three directors, which he claims will enhance governance and transparency [2][4]. Co-founders' Response - Cohen criticized the board changes as "Orwellian," arguing that they are detrimental to the brand's social mission rather than supportive [3][14]. - Cohen stated that the management does not recognize the value of Ben & Jerry's, which is rooted in its commitment to societal benefits rather than mere profit maximization [6][10]. Financial Performance - Ben & Jerry's generated approximately $1.3 billion in revenue in 2024, making it the third-largest revenue generator among Unilever's over 100 brands [6]. Future Outlook - Cohen suggested that investors would benefit more if Magnum sold Ben & Jerry's to a group that would honor its social mission, as he believes the current management is not aligned with the brand's values [7][10][14]. - Despite Magnum's claims of commitment to Ben & Jerry's mission, Cohen expressed skepticism about their understanding of the brand's core values [14][15].

Core Insights - TMICC has formally separated from Unilever and is establishing a key partnership with Publicis to enhance its identity as a standalone company [2][3] - The public listing of TMICC has created the world's largest ice cream maker, with a diverse portfolio including brands like Magnum, Ben & Jerry's, and Cornetto [3][7] - Publicis aims to leverage its data-driven technology and AI solutions to enhance TMICC's marketing efforts [3][5] Company Developments - The partnership with Publicis is seen as a pivotal step in TMICC's transformation journey, focusing on innovative and data-driven marketing strategies [4][7] - Publicis has recently secured several major accounts, including The Coca-Cola Company and Mars, highlighting its strengths in AI and data [5] - TMICC's transition has faced challenges, including internal governance issues at Ben & Jerry's, which has raised concerns about its independent board [6]

Corporate Governance Changes - Ben & Jerry's has revised its corporate governance rules, leading to the departure of its board chair and two other members, aimed at preserving the brand's social mission and integrity [1][3] - The updated governance rules impose a maximum term of nine years for directors on the independent board [2] Leadership and Board Changes - Anuradha Mittal, Daryn Dodson, and Jennifer Henderson will leave the board and will not be eligible for re-election after their terms expire in 2026 [3] - CEO Jochanan Senf emphasized that these changes will enhance the company's impact and drive progressive change [3] Criticism and Tensions - Co-founder Ben Cohen criticized the governance changes as a "blatant power grab" that undermines the board's authority and independence [3][4] - Cohen highlighted the contributions of the departing board members in maintaining the company's social mission [4] Recent Developments and Legal Issues - The Magnum Ice Cream Company has begun discussions with the Ben & Jerry's Foundation to address governance issues identified in a recent audit [5] - Ben & Jerry's has previously filed lawsuits against Unilever, alleging attempts to suppress its activism and public statements [6] Historical Context - Unilever sold its ice-cream operation in the Israeli-occupied West Bank in 2022, following Ben & Jerry's decision to halt sales in the territory, which led to diplomatic tensions [7]