Unilever spins off ice cream department despite not finding buyer

Unilever is going to spin off its ice cream division, which includes brands like Magnum and Cornetto. While announcing its – disappointing – full-year results, the multinational confirmed it was unable to find a buyer for the separated division and that it was going to float it to three stock exchanges.

Amsterdam-based

A year ago, Unilever decided to spin off its ice cream division as according to the multinational, ice cream is a business that is too seasonal and capital-intensive. The intention was to find a buyer for the division, but due to a lack of candidates, Unilever is now taking its ice cream to the stock market.

The ice cream division will become a Dutch company, with headquarters in Amsterdam. It will be listed on three stock exchanges: Amsterdam, London and New York. Peter ter Kulve will remain CEO, while Jean-François van Boxmeer, former Heineken CEO, will become chairman. The spin-off operation is expected to be completed by the end of this year.

At the same time, Unilever also announced its results for 2024. They were slightly disappointing after a weaker-than-expected fourth quarter: annual turnover increased by nearly 2 % to 60.8 billion euros. A year earlier, turnover had grown by 7 %. Underlying operating profit amounted to 11.2 billion euros. For this year, Unilever aims for a turnover growth of 3 to 5 % and a modest improvement in the operating margin.