Magnum Ice Cream Faces Profit Decline After Unilever Demerger
The Magnum Ice Cream Company, which operates the largest ice cream factory in the West of England, has reported a drop in profits following its recent demerger from Unilever. The global business, spun out in December, is now focusing on delivering profitable growth in the upcoming financial year.
Financial Performance and Strategic Outlook
In its latest financial results announced on February 12, 2026, the company revealed a 4.2 per cent organic sales growth year-on-year for the 2025 financial year, with revenue holding steady at €7.9 billion. However, operating profit decreased to €599 million, down from €764 million in 2024. This decline is attributed to separation and restructuring costs incurred during the demerger process.
Peter Ter Kulve, the CEO of Magnum, expressed optimism for the future, stating that the company anticipates three to five per cent organic sales growth and improvements in underlying margins over the coming year. He highlighted that the performance was driven by key brands such as Magnum, Ben & Jerry’s, Cornetto, and the Heartbrand, which saw 150 new product launches, including Magnum Utopia and Cornetto Max.
Regional Growth and Operational Initiatives
Every region contributed to the company's growth, with market share gains in most key markets, including the United States, its largest market. Ter Kulve emphasized that this success was supported by enhanced availability and operational rigor through a front-line first model. By executing a disciplined productivity program and implementing selective pricing actions, the company managed to mitigate the effects of elevated commodity inflation while continuing to grow volume.
Investment in Gloucester Factory
In a significant move to bolster operations, Magnum announced plans in November to invest £50 million in upgrading its Gloucester factory. Founded in 1959, this site is the second-largest ice cream factory in Europe, behind only Heppenheim in Germany. The facility produces nearly three million Calippos, two million Viennettas, and one million Ben & Jerry’s tubs weekly.
The upgrade will involve a complete rebuild of the factory’s mix plant, the installation of advanced blending systems, and new high-speed production lines for products like Twister and Solero. This investment aims to enhance efficiency and support future growth initiatives.
Background on the Demerger
Unilever first announced its intention to spin off its Gloucestershire-based ice cream division in 2024 as part of a broader portfolio restructuring. This shift involved moving away from food products towards household and other consumer goods, leading to the creation of the independent Magnum Ice Cream Company. The demerger marks a new chapter for the business, which now employs approximately 500 staff at its Gloucester plant, producing iconic brands such as Viennetta and Cornetto.
