Unilever sees gains in foods segment as ice cream demerger nears completion
Condiments and cooking aids were key contributors, with Hellmann’s growing by mid-single digits with gains in both price and volume.
UK – Unilever’s Foods segment, which accounts for 22% of Group turnover, posted underlying sales growth of 2.2% in the first half of 2025, with positive momentum in the second quarter powered by flagship brands Hellmann’s and Knorr.
This performance reflects the company’s strategy to drive competitive growth through superior products, especially during high-consumption seasons and popular meal occasions.
Volume contributed 0.3% to overall Foods growth, while pricing added 1.9%.
Condiments and cooking aids were key contributors. Hellmann’s, in particular, grew by mid-single digits with gains in both price and volume.
The brand’s global expansion, now spanning more than 30 markets, was complemented by strong demand for flavoured mayonnaise, supported by several successful product launches.
Knorr, which represents the majority of turnover in the Cooking Aids category, helped lift volume into positive territory in the second quarter, even as the category overall showed low-single digit growth primarily through pricing.
Meanwhile, Unilever Food Solutions held volume steady but saw a price-related decline, with North American growth offset by a slower Chinese market. Notably, China stabilized in Q2 after a challenging Q1 that had been compared to a firm 2024 performance.
Underlying operating profit for the Foods segment rose to €1.5 billion, a 2.8% increase year-over-year, supported by gains in productivity and margin. The operating margin improved by 100 basis points, aided by efficiencies across gross margin and overheads.
This operational momentum comes as Unilever continues to reshape its business portfolio, most notably through the planned separation of its Ice Cream division.
Ice Cream Demerger Set for Completion in November 2025
Unilever’s announced demerger of its Ice Cream division officially took effect on July 1, with the standalone entity, The Magnum Ice Cream Company (TMICC), expected to complete its spin-off by mid-November 2025.
The move aims to sharpen Unilever’s strategic focus while establishing TMICC as a global leader in the ice cream category.
Peter ter Kulve has been appointed CEO of TMICC, with Abhijit Bhattacharya as CFO. Jean-François van Boxmeer, Chair Designate, is currently assembling the board of non-executive directors. A Capital Markets Day is scheduled for September 9 in London, where TMICC will outline its business strategy and investment case.
Unilever will retain a stake of less than 20% in TMICC for up to five years, providing financial flexibility and underlining its confidence in the new company.
A formal shareholder circular will be issued in October, with prospectuses expected just ahead of the demerger and listing. Unilever also plans to consolidate its share capital post-demerger to maintain consistency in share metrics.
From Q4 2025, Unilever will report its Ice Cream operations as a discontinued segment.
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