Unilever has postponed the separation of its ice cream division from the broader FMCG group due to the closure of government offices in the United States. Initially anticipated to be completed by mid-November, the spin-off was part of plans established in early 2024 for stock market listings in New York, London, and Amsterdam under the name The Magnum Ice Cream Company (TMICC).
In a recent filing with the London Stock Exchange on October 21, Unilever stated, “The revision to the timetable has arisen because the US Securities and Exchange Commission is currently unable to declare effective the US registration statement required for The Magnum Ice Cream Company NV shares to be admitted to listing and trading on the New York Stock Exchange.”
Despite this setback, Unilever clarified that preparations for the demerger are proceeding well, although a new timeline cannot yet be established. The company expressed commitment and confidence in executing the separation in 2025. TMICC will be led by CEO Peter ter Kulve and CFO Abhijit Bhattacharya.
As part of the strategy, Unilever will maintain a 20% stake in the ice cream business for a maximum of five years, with plans for a gradual divestiture. Shareholders recently approved the post-consolidation of shares related to the spin-off; however, Unilever warned that this process might also experience delays due to ongoing government shutdowns. These shutdowns have now extended into their third week due to disputes over budget funding for 2026.
In July, when announcing first-half results, Unilever indicated that share consolidation aims to streamline the total number of shares and preserve comparability in share price, earnings, and dividends pre- and post-demerger. Notably, this announcement precedes the upcoming third-quarter results report scheduled for Thursday.
In the first half of the year, Unilever recorded underlying sales growth (USG) of 3.4%, generating €30.1 billion ($34.9 billion) in revenue. The ice cream segment notably outperformed others, achieving USG of 5.9% and generating €4.6 billion in turnover. In contrast, the wider food business lagged, reporting USG of 2.2% with €6.6 billion in revenue.
During the capital markets day in September, Unilever projected that separation costs associated with the ice cream spin-off would total around €800 million primarily related to technology, 80% of which will materialize by the conclusion of 2026. Restructuring expenses for the period from 2025 to 2028 will represent approximately 0.8% of group revenues.
TMICC is poised to secure a 21% global market share, surpassing Froneri’s 11%. Described as two major players in the ice cream sector, Froneri is a joint venture between Nestlé and PAI Partners, which has recently welcomed investments from the Abu Dhabi Investment Authority.
For stakeholders interested in the evolving landscape of the food and beverage industry trends, this development marks a significant moment in the food and drink business ecosystem. With ongoing changes reshaping food and drink consumer trends, Unilever’s strategic maneuvering will undoubtedly capture the attention of industry analysts and investors alike.
