London (Reuters) – Magnum Ice Cream Company said on Tuesday on a financial market day planning average organic growth from 3% to 5% per year in the medium term, from 2026, while Unilever ice cream activity must be split in mid -November.

The unit, which brings together emblematic brands such as Magnum, Ben & Jerry’s and Wall’s, should represent just over a fifth of the world market for iced creams, estimated at $ 88 billion (75.03 billion euros).

The split planned for mid-November will see Unilever keep a participation less than 20% and will act as test for the director general Fernando Fernandez, who wants to reorganize the British consumption giant, simplify management and improve the margins.

The division generated 7.9 billion euros in revenues in 2024, with 1.2 billion euros in adjusted Ebitda, and an initial net debt/Ebitda ratio adjusted at 2.4x.

Ice was the most dynamic category of Unilever in the second quarter, with an underlying growth of sales of 7.1%, but its margins are generally lower than those of other sectors such as personal care or beauty and well-being.

The split is part of Unilever’s strategy to focus its portfolio on key products to increase productivity and growth, according to the trend of its peers. For example, Keurig Dr Pepper plans to separate his divisions cold drinks and coffee, and Nestlé plans to sell unprime performance brands from his vitamin division.

Magnum hopes to achieve 500 million euros in medium -term savings by becoming independent and rationalizing its complex supply chains. In the past two years, the company has started to reverse the drop in market share and the stagnation of profits.

This new company will also be a test for investors, while products rich in sugar are increasingly scrutinized, especially in the United States as part of public health initiatives.

(Written by Alexander Marrow in London and Dimitri Rhodes in Gdansk; Noémie Naudin, edited by Augustin Turpin)

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