Core Viewpoint - The demerger of The Magnum Ice Cream Company (TMICC) from Unilever allows direct investment in popular ice cream brands, with TMICC valued at €7.8 billion ($9.1 billion) upon its debut on the stock market [2][3]. Company Overview - TMICC includes well-known brands such as Magnum, Cornetto, and Ben & Jerry's, and has been positioned as the world's largest ice cream producer [3]. - The company is not expected to qualify for major indices like the FTSE 100, which may lead to initial selling pressure from tracker funds [5]. Financial Insights - TMICC's valuation is competitive, being worth slightly more than Froneri, which holds an 11% market share in the $87 billion global ice cream market compared to TMICC's 21% [6]. - The absence of dividends in 2026 may deter some investors, impacting short-term share price prospects [5]. Growth Prospects - The CEO targets medium-term organic annual sales growth of 3%-5%, aligning with the long-term average achieved under Unilever [8]. - TMICC may have opportunities to enhance its supply chain investments, which were previously neglected under Unilever's broader portfolio [8]. Management and Governance - The management team, primarily composed of former Unilever employees, is expected to improve operational performance, although challenges remain, particularly with the Ben & Jerry's brand [9]. - Recent governance issues at Ben & Jerry's have raised concerns, with the CEO indicating potential changes in charitable contributions unless corporate governance issues are resolved [12]. Market Reactions - Unilever's stock rose by 3.6% following the debut of TMICC, indicating positive market sentiment towards the spin-off [32]. - The demerger is seen as a significant restructuring for Unilever, potentially leading to a re-rating of the company's market value as it focuses on its core brands [19][20].

Core Viewpoint - Unilever has delayed the demerger of its ice-cream business due to the US government shutdown, affecting the timeline for the spin-off and subsequent stock market listings [1][2]. Group 1: Demerger Details - The spin-off of the ice-cream business, expected to be finalized in mid-November, is now postponed, with no new timetable set [1][2]. - Unilever remains committed to the demerger, aiming for implementation in 2025, despite the current delays [3]. - The company will retain a 20% interest in the new entity, The Magnum Ice Cream Company (TMICC), for up to five years [3]. Group 2: Financial Performance - In the first half of the year, Unilever reported underlying sales growth (USG) of 3.4%, with a turnover of €30.1 billion ($34.9 billion) [6]. - Ice-cream sales outperformed other segments, achieving a USG of 5.9% and a turnover of €4.6 billion, with a volume increase of 3.8% [6]. - The rest of the food business underperformed, with a USG of 2.2% and a turnover of €6.6 billion [6]. Group 3: Shareholder Actions - Shareholders approved the post-consolidation of shares following the spin-off, but this process will also be delayed due to the US government shutdown [4][5]. - The share consolidation aims to maintain comparability in share price, earnings per share, and dividends before and after the demerger [5]. Group 4: Separation Costs - Unilever anticipates incurring €800 million in separation costs related to the ice-cream spin-off, primarily for technology, with 80% expected to be realized by the end of 2026 [7].