Magnum Ice Cream reports solid first-quarter sales growth

30th Apr 2026 09:45

(Sharecast News) - The Magnum Ice Cream Company reaffirmed its full-year guidance after reporting solid first-quarter organic sales growth, supported by higher volumes and pricing, although reported revenue fell because of foreign exchange movements.

The Amsterdam-traded Unilever spin-out, which is also listed in London and New York, said revenue was €1.77bn in the first quarter of 2026, down 1.2% from €1.79bn a year earlier.

Organic sales rose 4.5%, ahead of 3.8% growth in the prior-year period, with organic volume growth of 2.9% and organic price growth of 1.6%.

The company said reported revenue was affected by a 5.5% foreign exchange translation headwind, mainly driven by the strengthening of the euro.

Excluding royalties from India and Portugal, which were not yet in the group perimeter during the quarter but paid royalties to use Magnum Ice Cream Company brands, underlying organic sales growth was 4.7% and organic price growth was 1.8%.

Chief executive Peter Ter Kulve said the group had made "an encouraging start to 2026" and that the ice cream category continued to grow.

"In the first quarter organic sales grew across both volume and price, which is a testament to the breadth of our portfolio and our competitive execution," he said.

All three regions contributed positively to organic sales growth, with strength in the US and Europe and continued gains in AMEA.

The company said its 'Frontline First' model was supporting performance across at-home and away-from-home channels, while digital commerce maintained double-digit growth.

Magnum, Ben & Jerry's, Cornetto and the Heartbrand all contributed to the quarter's performance.

Magnum delivered mid-single-digit organic sales growth, helped by the launch of Magnum Pistachio and Peach in the EU, China and Turkey, and the further rollout of BonBons across several European markets.

Ben & Jerry's was flat overall, as low single-digit organic growth in the Americas was offset by declines in the EU, and Australia and New Zealand, after double-digit growth in the first quarter of 2025.

Cornetto delivered low single-digit organic growth, supported by the launch of Pistachio MAX in Europe and Turkey.

The Heartbrand recorded high-single-digit organic sales growth, driven by launches including Twister Freeze, the Minecraft stick, Volcanix five-layered stick and Solero BonBons across European markets, as well as Grape Ice Balls in Southeast Asia after their success in Thailand.

The group also pointed to new innovations such as high-protein, low-fat Yasso pints.

Magnum said total distribution points continued to improve as it expanded through the value channel in the US, developed partnerships with quick service restaurants in Europe and increased freezer deployment in high-growth markets.

Ter Kulve said the productivity programme was on track for the full year and that the acquisitions of India and Portugal had been completed as planned.

"The productivity programme is on track for the full year, the acquisitions of India and Portugal were completed as planned, and we remain on course to finalise our TSA exits by end of 2027," he said.

The company completed the acquisition of India on 30 March and Portugal's marketing and sales entity on 1 April.

The acquisition of the Portugal sourcing unit would complete separately following further regulatory and operational approvals.

Magnum said the results of the acquired businesses would be reflected in reported results from the second quarter.

All planned first-quarter exits from transition services agreements were completed on time, with the remaining exits still expected by the end of 2027.

Magnum Ice Cream Company said it expected increased costs across energy, raw materials, packaging and freight to be offset by commodity tailwinds, mitigating actions and its productivity programme.

The group reaffirmed its 2026 outlook for organic sales growth of 3% to 5% and an adjusted EBITDA margin improvement of 40 to 60 basis points on a comparable perimeter basis.

Reported adjusted EBITDA margin improvement was expected to be 0 to 20 basis points, mainly because of the India acquisition.

The company said improvements were expected to be weighted towards the second half because of the phasing of transition services agreements and the benefits of cocoa pricing.

"We are mindful of the heightened uncertainty in the global environment, particularly in the Middle East, albeit our direct regional exposure remains limited, and we are taking mitigating actions," Ter Kulve said.

"More broadly, we are well set up for the summer season, and our focus remains on executing our growth strategy and productivity programme."

At 1025 CEST (0925 BST), shares in the Magnum Ice Cream Company were up 11.82% in Amsterdam at €12.48.

Reporting by Josh White for Sharecast.com.

See latest RNS on Investegate