2Sem.·

TMICC - Why the Ice King is better than his reputation

$MICC Not only here was the opinion on the spin-off of $ULVR (+0,68 %) restrained. Admittedly: The stock market debut of the world's largest ice cream company was no fireworks - but the share has been pretty stable so far!

It's important to remember that 2024 was a really strong year for Unilever's ice cream segment and the conditions for 2025 were not extremely good.

The summer was rainy in many regions (which particularly affected the out-of-home business), commodity prices (cocoa!) rose and internally the focus was fully on the complex spin-off. The fact that the bottom line is still a slight increase for 2025 is a sign of quality for me.

Now it's time: Full focus on the core business. There won't be dividends until 2027, but that's okay. We are currently working hard on increasing margins and recovering free cash flow - so the "necessary evil" of the spin-off is being tackled head on. I am also a fan of the innovations to date and am excited to see what else the pipeline has in store.

Apart from the figures: It feels kind of cool to now be able to officially call yourself a co-owner of childhood brands such as Ben & Jerry's, Langnese or Magnum. I can't wait to see how the Group develops!

If I could make one wish to the Group - please bring back Solero Shots. :D

Nuqqx

@Nuqqx

1Mo·

Spin Off Unilever -> Magnum Ice Cream Company. What are your thoughts?

$ULVR (+0,68 %) has announced that it will spin off its global ice cream division, including brands such as Magnum, Ben & Jerry's, Langnese and Cornetto, into an independent company called The Magnum Ice Cream Company (TMICC).

The reasons for this:

Unilever sees the ice cream business as having a strong seasonal component, high capital commitment and complex supply chains - these are very different from its core beauty, personal care and food businesses.
The spin-off is intended to release value: TMICC should grow independently, with a targeted focus on brands, realize economies of scale and offer investors a pure "ice cream playground".

Key data of the spin-off

TMICC will be headquartered in the Netherlands and plans to be listed on the stock exchanges in Amsterdam, London and New York.
Unilever will retain a minority stake of less than 20% after the spin-off and will reduce this over time.
Employment conditions for around 6,000 Eiskrem employees in Europe/UK have been secured in advance for at least three years to ensure stability during the transition phase.

Opportunities & risks

Opportunities:

TMICC can fully specialize in ice cream, allowing it to operate more flexibly and potentially achieve higher margins.
Investors gain a clearer investment vehicle for the global ice cream market - potential for valuation premium.

Risks:

Seasonal and weather-dependent business, cold transportation chains, competitive pressure and fluctuations in raw material and energy prices remain challenges.
At the same time, brands such as Ben & Jerry's are struggling with strategic tensions: e.g. conflicts over the social mission vis-à-vis TMICC/Unilever.

Question for the forum:

What do you think about the spin-off of Unilever's ice cream business into the Magnum Ice Cream Company? Do you think that TMICC really is really better positioned to increase growth and margins - or is there a risk that the spin-off will bring more risk than benefit?

Disclaimer:

I am invested and Unilever is a SWAN (sleep well at night) stock for me in my dividend portfolio, in fact one of my largest positions.

2 Commentaires

Billy O.@IBilly

1Sem.

Your opinion is completely in line with mine.
After the spin-off, I made a generous investment.
Magnum no longer has to focus on distributions for Unilever and can now realize its full potential and invest in growth. Western investors are not impressed by Magnum and who is surprised? Next to Magnum in the supermarket, the cheap private label is already available. The value of the product is being misjudged here. It's not about who the competition is in the supermarket, it's about the place of sale! In the outdoor pool, in the movie theater, at the kiosk, no store brand is sipped. In warm countries, where Magnum can finally concentrate completely, there are hardly any large retail chains that can offer such private labels. This means that Magnum is going into the imagination.
The company is being completely misjudged according to Western criteria and the market is severely underestimating the brand.
We can look forward to high returns.

•

asset_guru_2942@asset_guru_2942

1Sem.

I have to say that spin-offs are extremely annoying for me.
All the spin-offs in the last 4 years have created "portfolio corpses" that I didn't want and didn't fit in with my strategy. They were always negative transactions. Now I have even fewer Unilever shares than before and compared to before I have a nice minus.
Selling Unilever always went without problems, but I can't sell Magnum without high additional costs and transferring it to another custody account doesn't work either, for whatever reason, at least the message "Magnum ICE cannot be transferred" came up immediately
I would prefer everything to stay as it was when I chose a share.
I would prefer to switch to ETFs to have peace of mind in the future. But I also use the shares to reduce my tax burden, so I would like to keep the small handful.

••