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

David Murray promoted as pladis CMO, Mete Buyurgan takes UK & Ireland helm

Mete Buyurgan (L) and David Murray

David Murray named pladis CMO

Snacking giant pladis has announced David Murray, currently leader of its UK and Ireland enterprise, will transition to the newly created position of global chief commercial officer.

After five years at the helm of pladis UK&I, Murray’s new role will see him take ownership of the company’s global platform and brand strategy along with its commercial transformation.

Keep ReadingShow less
Illegal cigarettes in Meir

Illegal cigarettes

iStock

Thousands of illegal cigarettes seized from Meir shop raids

More than £20,000 worth of illicit tobacco and vapes were seized from multiple premises in an one-day operation in Meir by Trading Standards team along with officers from Stoke-on-Trent City Council and Staffordshire Police.

The operation is the latest across the city that resulted in 13 shops being closed in the last 12 months, and forms part of Operation Cece, which is a National Trading Standards initiative in Partnership with HMRC to tackle illegal tobacco.

Keep ReadingShow less
​Don Julio Tequila

Don Julio Tequila, owned by Diageo. The spirits giant sells billions of dollars worth of tequila and Canadian whisky in the US.

Photo by Anna Webber/Getty Images for Flipper's Boogie Palace

Diageo suggests tougher rules of origin requirements as alternative to Trump’s tariffs

Spirits giant Diageo has suggested the US government consider tougher rules of origin requirements in trade agreements as an alternative to tariffs, a letter to the US Trade Representative showed.

In the March 11 letter, Diageo, the world's top spirits maker caught in the crossfire of US president Donald Trump's effort to remake global trade, argued that new rules of origin could support his aims and benefit the industry.

Keep ReadingShow less
Asda store with Rollback pricing sign for 2024 sales strategy

Asda Express stores offset sales dip at the supermarket

Asda's profits climb despite sales decline, driven by George and Express

Asda on Friday reported a decline in its annual sales for the 2024 financial year, but the retailer has seen profits rising on margin gains.

The supermarket chain said its total revenue for the year to 31 December 2024 declined by 0.8 per cent to £21.7 billion, while like-for-like sales (excluding fuel) were lower by 3.4 per cent.

Keep ReadingShow less
Strategic Ranging of Premium Apple Cider Essential for 2025 Sales

Henry Westons Vintage 500ml is the number one cider SKU in the convenience channel

Crafted cider surge: Retailers urged to embrace premiumisation for sales boost

The unstoppable rise of crafted apple cider is setting the benchmark for success in the UK’s £1.1 billion off-trade cider market, according to the latest Westons Cider Report.

The leading cider producer advises that convenience retailers who prioritise premium products and strategic ranging will be best placed to drive sales in 2025.

Keep ReadingShow less