The Magnum Ice Cream Company has had a torrid start to public life, as its first set of annual results wiped 13% off its share price.
While the company delivered 4.2% organic sales growth and revenues of €7.9bn in 2025, investors were spooked by a drop in profit, cashflow and a 3% fall in Q4 volumes – which widely missed analyst expectations of 0.5% growth.
“Magnum Ice Cream Co has seen its share price melt faster than a Cornetto left in the sun,” AJ Bell head of markets Dan Coatsworth said. He added the blow to cash and profits “raised questions” about how the IPO had been managed.
“The sell-off suggests lots of Unilever holders were looking for any excuse to offload the shares they were handed as part of the demerger,” Coatsworth said.
Magnum’s FY operating margin shrank from 9.6% of revenues to 7.6%, with adjusted EBITDA falling 6.3% to €1.3bn.
The fall in Q4 volumes “reignited” worries over the impact of GLP-1 weight-loss drugs on the sweet treat maker’s prospects, according to Jefferies analyst David Hayes.
“Results were always going to be complicated by a lack of clear consensus and track record,” he said.
“Volume here is key, with the risk that GLP-1 structural concerns builds a theme. This miss will not help that anxiety.”
Coatsworth added the results reinforced Unilever’s decision to exit the division.
Magnum’s former parent posted 3.5% underlying sales growth from a 1.5% rise in volumes for 2025, as core ‘power brands’ helped insulate the fmcg giant from slowing markets.
CEO Fernando Fernández said Thursday’s results reflected a “simpler, sharper Unilever” after a year of spin outs and non-core disposals.
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