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

Executive summary

• Achieved €7.9 billion in revenue for 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 headwinds.

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

• Net profit dropped to €307 million from €595 million, reflecting higher finance costs, separation expenses, and hyperinflationary losses in Türkiye.

• Completed demerger from Unilever, establishing new governance, structure, and culture, with listings in Amsterdam, London, and New York.

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

Financial highlights

• Adjusted EBITDA margin declined to 15.9% (from 16.9%), mainly due to FX and TSA-related costs.

• Adjusted EBIT margin was 11.6% (down from 12.1%).

• Free cash flow was €38 million, down from €803 million, impacted by demerger, TSA, 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 between 3% and 5%, with underlying margin improvement weighted to H2.

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

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

• Commodity cost inflation expected to be low single-digit in 2026, with benefits weighted to the second half.