Heatwave Boosts Ice Cream Sales as Magnum Beats Earnings Forecasts
The Magnum Ice Cream Company (MICC) posted first-half core earnings above analyst expectations on July 30. Cost cuts since its 2025 spinoff from Unilever (UL) drove the beat, alongside a heatwave-driven summer season surge for Ben & Jerry’s.
Revenue reached €4.7 billion, up from €4.5 billion a 12 months earlier, with natural gross sales progress of 4.7% throughout each area. Adjusted EBIT climbed 7.5% to €716 million, although separation prices pulled internet revenue all the way down to €349 million.
Ben & Jerry’s Powers a Hot Start to Summer
Ben & Jerry’s led the features throughout the portfolio. Growth accelerated sharply as soon as summer season warmth set in throughout Europe. New stick and sandwich codecs pulled recent consumers into the model, each within the Americas and in Europe.
“Ben & Jerry’s grew mid-single-digit and had an excellent second quarter with 9.2% progress.”
Peter ter Kulve, the corporate’s CEO, praised a frontline-first working mannequin in a statement tied to the outcomes. Sustained warmth throughout Europe has already lifted different heatwave-driven cooling stocks this summer season, and that development now extends to frozen treats.
Magnum, Cornetto, and the Heartbrand additionally posted features. All 4 core manufacturers confirmed optimistic momentum, and Yasso, the corporate’s high-protein pint line, stored rising at a double-digit tempo. The sample echoes the seasonal performs behind a number of US stocks to watch this July.
Magnum’s Cost Cuts and Productivity Gains Lift Margins
A productiveness programme launched in 2024 delivered €90 million in first-half financial savings, most of it from the provision chain. Waste discount and higher manufacturing facility use each contributed. Meanwhile, a positive working capital swing tied to the Unilever separation almost doubled Free Cash Flow to €273 million.
Standalone financing pushed internet finance prices as much as €72 million, in contrast with simply €10 million a 12 months earlier. That shift traces up with the broader high-rate backdrop highlighted by the Fed’s July decision to maintain charges regular, a transfer that rattled bond markets and pushed long-term borrowing prices to multi-year highs.
The earnings beat nonetheless continues a summer season sample of companies topping Wall Street estimates. It follows Robinhood’s earnings beat and Intel’s surprise profit beat earlier this season, each delivered regardless of blended investor reactions.
Shares of Magnum Ice Cream (EURONEXT: MICC) have been altering fingers close to €16.16 forward of the print, up roughly 19% for the 12 months and near the all-time high of €16.74 hit on July 7. The inventory has climbed steadily since bottoming close to €11 in late April, and the chart reveals that run largely intact heading into outcomes day.
Management reaffirmed full-year steerage of three% to five% natural gross sales progress. The firm now enters peak summer season demand with momentum intact. A pending antitrust assessment of its freezer-cabinet practices in Türkiye provides a regulatory wrinkle to look at.
The subsequent quarter ought to nonetheless present whether or not the warmth and the fee self-discipline each maintain.
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