- Unilever completed the demerger of its ice cream business, TMICC.
- Shares in TMICC are set to begin trading this morning.
- TMICC is the largest ice cream business in the world.
Aarin Chiekrie, equity analyst, Hargreaves Lansdown:
“Unilever’s spin-off of its ice cream business into The Magnum Ice Cream Company (TMICC) was completed over the weekend, and shares are set to begin trading in London, Amsterdam and New York when markets open this morning. TMICC has already been functioning as a standalone business since 1 July 2025, so the trading of its shares shouldn’t bring any major disruption to operations.
The separation makes TMICC the largest ice cream business in the world, with iconic brands like Magnum, Ben & Jerry’s, Wall’s and Cornetto in its portfolio. It’s already scooped up a 21% share of global ice cream sales, nearly double that of its largest competitor, Froneri. The global ice cream market is forecast to grow by 3-4% annually until at least 2029. TMICC is targeting growth slightly ahead of this pace, up to 5% annually, driven by increased marketing investment, improved distribution channels and market share gains.
TMICC is already free cash flow positive and profitable in its own right. The balance sheet is in decent shape, but dividends are off the cards until 2027 as the group finds its footing as a standalone business. That could cause some downward pressure on the share price in the near term, as dividend-focussed investment funds that hold Unilever will be handed TMICC shares, the latter of which they may be forced to sell to abide by their investment mandate.”
