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 effects.

• Maintained resilient performance and market share gains across all regions, leveraging innovation, premiumization, and digital channels.

• Productivity programs delivered €180 million in 2025 savings and €250 million cumulative, supporting margin resilience amid restructuring and separation costs.

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

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

Financial highlights

• Reported revenue of €7.9 billion for 2025, with organic sales growth of 4.2% (volume +1.5%, price +2.6%), but reported sales growth of -0.5% due to FX.

• 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 for 2025 was €38 million (down from €803 million), mainly due to demerger and TSA-related outflows.

• 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.

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

• Commodity cost inflation expected to be low single-digit in 2026, with improvements weighted to H2.

• Adjusted effective tax rate for 2026 expected around 27%; net finance cost projected at ~€180 million.

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