Heatwave Boosts Ice Cream Sales as Magnum Beats Earnings Forecasts

The Magnum Ice Cream Company (MICC) posted first-half halfway net supra expert expectations connected July 30. Cost cuts since its 2025 spinoff from Unilever (UL) drove the beat, alongside a heatwave-driven summertime surge for Ben & Jerry's.

Revenue reached €4.7 billion, up from €4.5 cardinal a twelvemonth earlier, with integrated income maturation of 4.7% crossed each region. Adjusted EBIT climbed 7.5% to €716 million, though separation costs pulled nett net down to €349 million.

Ben & Jerry's Powers a Hot Start to Summer

Ben & Jerry's led the gains crossed the portfolio. Growth accelerated sharply erstwhile summertime vigor acceptable successful crossed Europe. New instrumentality and sandwich formats pulled caller buyers into the brand, some successful the Americas and successful Europe.

"Ben & Jerry's grew mid-single-digit and had an outstanding 2nd 4th with 9.2% growth."

Peter ter Kulve, the company's CEO, praised a frontline-first operating exemplary successful a connection tied to the results. Sustained vigor crossed Europe has already lifted different heatwave-driven cooling stocks this summer, and that inclination present extends to frozen treats.

Magnum, Cornetto, and the Heartbrand besides posted gains. All 4 halfway brands showed affirmative momentum, and Yasso, the company's high-protein pint line, kept increasing astatine a double-digit pace. The signifier echoes the seasonal plays down respective US stocks to ticker this July.

Magnum's Cost Cuts and Productivity Gains Lift Margins

A productivity programme launched successful 2024 delivered €90 cardinal successful first-half savings, astir of it from the proviso chain. Waste simplification and amended mill usage some contributed. Meanwhile, a favorable moving superior plaything tied to the Unilever separation astir doubled Free Cash Flow to €273 million.

Standalone financing pushed nett concern costs up to €72 million, compared with conscionable €10 cardinal a twelvemonth earlier. That displacement lines up with the broader high-rate backdrop highlighted by the Fed's July determination to clasp rates steady, a determination that rattled enslaved markets and pushed semipermanent borrowing costs to multi-year highs.

The net bushed nevertheless continues a summertime signifier of firms topping Wall Street estimates. It follows Robinhood's net bushed and Intel's astonishment nett bushed earlier this season, some delivered contempt mixed capitalist reactions.

Shares of Magnum Ice Cream (EURONEXT: MICC) were changing hands adjacent €16.16 up of the print, up astir 19% for the twelvemonth and adjacent to the all-time precocious of €16.74 deed connected July 7. The banal has climbed steadily since bottoming adjacent €11 successful precocious April, and the illustration shows that tally mostly intact heading into results day.