The company confirmed a “revision to the timetable” for the demerger of The Magnum Ice Cream Company (TMICC), as a result of the ongoing US federal government shutdown.
When the demerger takes place Unilever will retain a stake of c.19.9% in TMICC, for a period of up to five years. The retained stake will be sold “over time” to pay separation costs and maintain capital flexibility through a reduction in net debt, the company said.
It said it expects TMICC to be reported on by Unilever as a discontinued operation from the fourth quarter.
In its third quarter results it revealed that ice cream accounted for 16% of turnover at the company.
It has been focused on continuing to strengthen the business in preparation for the demerger by developing an “exciting product pipeline”, designing more efficient go-to-market strategies, optimising the supply chain, and building a dedicated sales team globally.
Ice cream underlying sales grew by 3.7%, with 3.7% from price and flat volume.
Cornetto led the performance with high-single-digit growth, supported by the ongoing success of new flavours and formats across Europe and Asia.
Meanwhile, Ben & Jerry’s grew mid-single digit supported by the ongoing success of innovations launched in the first half, including new dairy and non-dairy flavours and Scoopapalooza, a mega pint format driving sharing occasions in the US, it said.
Overall Unilever’s food business saw underlying sales grow by 3.4%, with 1.3% from volume and 2.1% from price.
Growth was led by strong momentum in Hellmann’s and a gradual recovery in key markets in Asia Pacific Africa.
Fernando Fernandez, CEO of Unilever, said: “Our performance excluding Ice Cream showed good sequential improvement, with a step up in volume growth. We expect to complete the Demerger of the Ice Cream business by the end of the year. This will create a simpler Unilever, with a sharper focus and structurally higher margin profile.
“We’re shaping a brand portfolio that’s built for the future – with more Beauty, Wellbeing and Personal Care, prioritising premium segments and digital commerce, and anchoring our growth in the US and India. By putting desire at scale at the core of our strategy, and executing with excellence across every channel, we’re setting Unilever up to win.”
Overall the company revealed underlying sales growth of 3.4%, with volume growth of 1.5% and price of 1.9%, with beauty & Wellbeing performing well.
Last month, Ben & Jerry’s co-founder Jerry Greenfield has announced he was quitting his role with the ice cream brand and accused owner Unilever of silencing its social mission.
