Unilever reaffirms Magnum ice cream demerger for 2025 despite US government shutdown delay 

USA – Unilever has reaffirmed its commitment to completing the demerger of The Magnum Ice Cream Company (TMICC) by the end of 2025, despite a temporary delay caused by the ongoing US federal government shutdown. 

In a statement issued on October 23, the company confirmed that all preparatory activities for the demerger are “on track and progressing well,” emphasizing that it remains “committed to and confident of” executing the plan within the targeted timeframe.  

“We will provide further updates on the revised timetable as soon as practicable,” Unilever said. 

As part of the planned separation, Unilever will retain a 19.9% minority stake in TMICC for up to five years. The holding will be gradually reduced “in an orderly and considered manner” to help fund separation costs and maintain capital flexibility by lowering net debt.  

The company expects to classify its Ice Cream Business Group as a discontinued operation starting from the fourth quarter of 2025. 

The demerger is a key component of Unilever’s broader portfolio reshaping strategy aimed at sharpening focus on its core business areas and improving growth momentum. According to the company, separating the ice cream division will enhance operational efficiency and unlock long-term shareholder value. 

In its latest quarterly results, Unilever reported that ice cream contributed 16% of the company’s overall turnover. Ahead of the demerger, the firm has been reinforcing the business through product innovation, streamlined go-to-market strategies, supply chain optimization, and the establishment of a dedicated global sales team. 

Ice cream underlying sales grew by 3.7%, supported entirely by price growth, while volumes remained stable. Cornetto led performance with high single-digit growth, driven by the success of new flavors and formats across Europe and Asia.  

Ben & Jerry’s also achieved mid-single-digit growth, supported by recent innovations, including new dairy and non-dairy flavors and the Scoopapalooza pint format popular in the US. 

Unilever’s wider food division posted underlying sales growth of 3.4%, with contributions from both volume (1.3%) and price (2.1%), led by strong performance from Hellmann’s and gradual recovery in key Asia-Pacific and African markets. 

Unilever CEO Fernando Fernandez stated that the upcoming demerger will create a “simpler Unilever with a sharper focus and structurally higher margin profile,” reinforcing the company’s transformation toward a more agile and growth-driven business model. 

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