Skip to content
Search
AI Powered
Latest Stories

Unilever announces demerger plans for ice cream business

The company has reported improved performance in 2024

Unilever office
Photo: iStock

Unilever said on Thursday its ice cream business will be separated by way of demerger, through listing of the business in Amsterdam, London and New York.

"This decision follows a full review by the Board of separation options," the company said.


The owner of the popular Magnum and Wall's brands had announced plans last year to separate the ice cream division to win back investor confidence after years of underperformance.

Unilever reported underlying sales growth of 4 per cent for its 2024 financial year, led by 2.9 per cent volume growth.

Turnover increased 1.9 per cent to €60.8 billion (£50.7) with -0.7 per cent impact from currency and -1.5 per cent from net disposals. Underlying operating profit was €11.2bn, up 12.6 per cent versus the prior year.

However, the British consumer goods giant announced falling net profits for 2024, hit by exiting Russia and other restructuring costs. Profit after tax dropped 11 per cent to €5.7bn compared with 2023.

The company’s power brands, which accounts for over 75 per cent of turnover, saw underlying sales growth of 5.3 per cent and volumes rising by 3.8 per cent. with particularly strong performances from Dove, Comfort, Vaseline and Liquid I.V. Fewer.

Underlying earnings per share (EPS) increased 14.7 per cent, while diluted EPS decreased 10.6 per cent due to loss on disposals and accelerated productivity programme spend.

“Today’s results reflect a year of significant activity as we focused on transforming Unilever into a consistently higher performing business,” Hein Schumacher, chief executive, commented.

“Under the Growth Action Plan, we committed to doing fewer things, better and with greater impact. We executed the plan at pace and made progress in 2024.”

The fall in profits reflected the sale of assets and “higher restructuring costs as a result of accelerating the productivity programme,” the company said in its earnings statement.

Unilever at the end of last year sold its Russian subsidiary to Arnest Group, finally joining other multinationals in exiting the country following its invasion of Ukraine in February 2022.

The company expects underlying sales growth for full year 2025 to be within its multi-year range of 3 to 5 per cent. It hinted at price increases during the year on account of higher commodity costs, but said it expects a more balanced split between volume and price.

“Market growth, which slowed throughout 2024, is expected to remain soft in the first half of 2025. The steps we have taken in 2024, including the launch of our refreshed GAP2030 strategy, further reinvestment in our brands and strong innovation pipelines leave us better positioned to deliver on our ambitions in the years ahead,” Schumacher said.

Unilever has appointed Jean-Francois van Boxmeer, former boss of Heineken, as chair designate for the separated ice cream business. Currently serving as chair of Vodafone Group Plc and non-executive director of Heineken Holding, he has been the chief executive of Heineken for 15 years.

The separation of Ice Cream, expected to be completed by the end of 2025, will cost thousands of jobs as the group seeks to save €800m by 2026.

More for you

Grocers to cash in on Mother's Day spending surge
iStock image

Grocers to cash in on Mother's Day spending surge

Grocers are set to benefit on Mother's Day this year as more consumers are expected to have a special meal at home, states a recent report, adding that spending on Mother’s Day is set to reach £2.4 billion in 2025.

According to GlobalData Retail Mother’s Day Intentions Report 2025, the proportion of UK consumers planning to purchase at least one item for Mother’s Day 2025 has risen to 56.4 per cent, a 2.9ppt increase on 2024.

Keep ReadingShow less
Hammer-wielding robber targets Bottesford store
Photo: iStock

Hammer-wielding robber targets Bottesford store, cigarettes stolen

Staff at a Bottesford store were threatened with a hammer during a brazen robbery last week, Leicestershire Police said.

The incident, which occurred just after 10:30 am on 12 March, saw a male suspect enter a shop on Grantham Road and brandish the weapon before jumping over the counter. He then proceeded to steal a quantity of cigarettes before fleeing the scene in a silver Volkswagen Tiguan.

Keep ReadingShow less
Ilford North traders protesting the disposable vape ban
Vape products are displayed for sale on October 27, 2024 in London, England
Photo by Alishia Abodunde/Getty Images

Retailers concerned over disposable vape ban

Heavily criticising the upcoming disposable vape ban, traders in Wes Streeting's constituency of Ilford North have raised the concern that the new law will hurt small businesses and will backfire badly as the product will be available illegally even after the ban.

According to a recent survey by We Vape, 95 per cent of UK traders believe the ban will hurt small businesses.

Keep ReadingShow less
​ Nisa retailer Benny McClave retires after years of service

Nisa retailer Benny McClave

Nisa

Brookeborough Nisa retailer retires after 45 years of service

After 45 years of dedicated service to the Brookeborough community, independent retailer Benny McClave is retiring from his beloved Nisa store.

A fixture of the village in Northern Ireland, ‘Benny’s Shop’ has been more than just a convenience store - it has been a cornerstone of the community, a place where friendships were formed, and countless memories were made.

Keep ReadingShow less