Magnum Shares Plummet After Initial Earnings Report: The Reasons Behind the Ice Cream Maker's Profit Decline.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy MICC?
Source: Barron's
Earnings Report Impact: Magnum Ice Cream Co. shares experienced a decline following the release of its first earnings report after being separated from Unilever.
Spinoff Context: The earnings report marks a significant milestone for Magnum as it transitions from being part of a larger consumer-goods company to operating independently.
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Analyst Views on MICC
Wall Street analysts forecast MICC stock price to rise
10 Analyst Rating
3 Buy
7 Hold
0 Sell
Moderate Buy
Current: 16.310
Low
15.82
Averages
16.92
High
19.20
Current: 16.310
Low
15.82
Averages
16.92
High
19.20
About MICC
Magnum Ice Cream Company NV is a Netherlands-based company primarily engaged in the food manufacturing industry, specifically in the ice cream and frozen dessert. The Company focuses on producing and marketing ice cream products under globally recognized brands such as Magnum, Ben & Jerry’s, Cornetto, and Wall’s. Their key product is Magnum ice cream, which is a packaged frozen dessert. The Group has organized its business into three segments: Europe and ANZ, representing Europe (which includes the United Kingdom and Ireland), Australia and New Zealand; Americas, representing North America and South America; and Rest of the World (RoW), representing Africa, Asia and the Middle East (which includes Turkey).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Magnum Shares Plummet After Initial Earnings Report: The Reasons Behind the Ice Cream Maker's Profit Decline.
Earnings Report Impact: Magnum Ice Cream Co. shares experienced a decline following the release of its first earnings report after being separated from Unilever.
Spinoff Context: The earnings report marks a significant milestone for Magnum as it transitions from being part of a larger consumer-goods company to operating independently.
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- Operating Profit Decline: The operating profit for FY 2024 was €599 million, down from the projected €764 million for FY 2025, primarily due to a planned net increase of €118 million in separation and restructuring costs, which will pressure future profitability.
- Adjusted EBITDA Margin: The FY 2025 adjusted EBITDA margin is expected to be 15.9%, down from 16.9% in FY 2024, mainly impacted by forex translation effects and previously allocated depreciation costs, which could affect the company's cash flow management.
- Market Reaction and Analyst Ratings: Despite Magnum Ice Cream's stock rallying to a post-Unilever separation high, analysts remain cautious about its future performance, suggesting a hold rating as the company may face short-term challenges ahead.
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- EBITDA and EBIT Metrics: Adjusted EBITDA stood at €1.255 billion with an EBIT margin of 11.6%, impacted by forex translation effects and cash costs related to Transitional Service Agreements, highlighting pressures on cost management.
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Magnum Shares Plummet After Initial Earnings Report: The Reasons Behind the Ice Cream Maker's Profit Decline.
Earnings Report Impact: Magnum Ice Cream Co. shares experienced a decline following the release of its first earnings report after being separated from Unilever.
Spinoff Context: The earnings report marks a significant milestone for Magnum as it transitions from being part of a larger consumer-goods company to operating independently.
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- Operating Profit Decline: The operating profit for FY 2024 was €599 million, down from the projected €764 million for FY 2025, primarily due to a planned net increase of €118 million in separation and restructuring costs, which will pressure future profitability.
- Adjusted EBITDA Margin: The FY 2025 adjusted EBITDA margin is expected to be 15.9%, down from 16.9% in FY 2024, mainly impacted by forex translation effects and previously allocated depreciation costs, which could affect the company's cash flow management.
- Market Reaction and Analyst Ratings: Despite Magnum Ice Cream's stock rallying to a post-Unilever separation high, analysts remain cautious about its future performance, suggesting a hold rating as the company may face short-term challenges ahead.
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- Stock Price Surge: Fastly's shares jumped 34.8% to $12.55 in pre-market trading, reflecting a positive investor reaction to the earnings report, which may attract more investor interest in its future developments.
- Increased Market Confidence: The strong earnings report not only enhances investor confidence but may also prompt analysts to revise their ratings and price targets for the company, potentially driving further stock price increases.
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- Operating Profit Decline: Operating profit fell to €599 million in 2025 from €764 million in 2024, primarily due to a planned increase of €118 million in separation and restructuring costs, reflecting challenges faced during the complex separation process.
- EBITDA and EBIT Metrics: Adjusted EBITDA stood at €1.255 billion with an EBIT margin of 11.6%, impacted by forex translation effects and cash costs related to Transitional Service Agreements, highlighting pressures on cost management.
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