Unilever's Ice Cream Spin-off Boosts Second-Quarter Sales Amid Strategic Overhaul
Unilever reported a stronger-than-expected second-quarter sales growth, driven by a robust performance in its ice cream division, which will be spun off as The Magnum Ice Cream Company in November. The company retains a stake in the spin-off. Unilever also maintained its full-year sales outlook and made strategic changes.
Unilever, primarily known for its Dove soap, surpassed expectations for second-quarter sales, largely due to an impressive performance in its ice cream sector, poised for a spin-off this November. The new entity, The Magnum Ice Cream Company, will see Unilever keep a minority stake for up to five years.
The ice cream division experienced a 7.1% sales growth—its fastest-growing segment—bolstered by innovations like the Magnum Utopia range. Executive Peter ter Kulve will helm the company, which also includes brands such as Ben & Jerry's, Cornetto, and Wall's. Unilever's restructuring aims to address past underperformance.
Unilever maintained its full-year sales outlook, noting a 3.8% growth for the last quarter. It outshone competitors like Procter & Gamble and Nestle. Geographical markets such as Europe and North America showed strong performance, while the U.S. saw substantial investments paying off. Despite a drop in cash flow due to operational changes, Unilever remains confident in future growth.
(With inputs from agencies.)
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