The Magnum Ice Cream Company (MICC) Q4 2025 earnings summary

Executive summary

• Achieved €7.9 billion revenue in 2025 with 4.2% organic sales growth, 1.5% volume growth, and 2.6% price growth, despite a -0.5% reported revenue decline due to FX effects.

• Operating profit declined to €599 million from €764 million, mainly due to €118 million higher separation and restructuring costs and adverse FX impacts.

• Completed demerger from Unilever, establishing a focused, standalone ice cream company with new governance, listings in Amsterdam, London, and New York, and a €3 billion debut bond issuance.

• Productivity program delivered €180 million in 2025 savings, €250 million cumulative, supporting reinvestment in brands and operations.

• Innovation, premiumization, and digital expansion drove market share gains across all regions.

Financial highlights

• Reported revenue of €7.9 billion for 2025, with price contributing 2.6 percentage points to growth.

• Adjusted EBIT margin at 11.6% (down from 12.1%), Adjusted EBITDA margin at 15.9% (down from 16.9%), both mainly impacted by FX and TSA costs.

• Free cash flow was €38 million, down from €803 million, mainly due to demerger-related outflows and higher interest costs.

• Net debt increased to €2,967 million (from €263 million), primarily due to bond issuance and settlement of Unilever payables.

• Adjusted EPS was €0.93; diluted EPS was €0.48.

Outlook and guidance

• Organic sales growth for 2026 expected at 3%-5%, with underlying margin improvement weighted to H2 2026.

• Adjusted EBITDA margin improvement of 40–60bps on a comparable basis; reported margin improvement of 0–20bps due to India acquisition.

• Adjusted effective tax rate for 2026 expected at 27%.

• Commodity cost headwinds to ease, with benefits weighted to the second half of 2026.

• India and Portugal acquisitions expected to close in H1 2026, impacting reported Adjusted EBITDA by 0-20bps.