Magnum reported a 4.9% rise in global sales volumes in the second quarter, with revenues topping £2.5 billion, as heatwaves across Europe drove strong demand for its ice cream brands.
The company, which owns Cornetto and Wall's and was spun out of Unilever last year, said European volumes rose 5%, supported by favourable weather, with France and the UK performing especially well. Chief executive Peter Ter Kulve said the company's "key summer selling season got off to a strong start."
In the Americas, however, volumes grew by just 0.1% in the second quarter, down from 1.8% in the same period a year earlier, with the company relying on higher prices to sustain revenue. Executives have previously sought to play down the impact of weight loss drugs such as Ozempic, which curb consumers' desire to snack.
Magnum said consumers are shifting away from buying large tubs of ice cream and toward premium ice cream on sticks as an occasional indulgence. The company has expanded its range of lower-calorie options, including smaller versions of Magnum Bonbons and Ben & Jerry's Peaces. Ter Kulve said the ice cream market "goes from strength to strength" and is now "driven" by a shift toward products consumers see as offering "more calorie control."
Profits fell 14% to £430 million in the first half of the year, from £502 million a year earlier. The company reiterated guidance for annual sales growth of between 3% and 5%, while noting uncertainty in the global environment, particularly in the Middle East and its effect on input costs.
Ben & Jerry's dispute
The results come as Magnum faces a dispute with the co-founders of Ben & Jerry's. Ben Cohen, who co-founded the brand in 1978 alongside Jerry Greenfield, has criticised the company's owners for suppressing the brand's attempts to make political statements. The Ben & Jerry's Foundation said this month it would be forced to close at the end of the year after its owners cut funding, citing governance issues.
Ter Kulve said the company still funds "all the important activism goals" Ben & Jerry's is known for, but added that "we needed a governance step up." Cohen has accused Unilever and Magnum of trying to block the ice cream company from expressing its support for Gaza and criticism of Israel. Magnum said it is not considering selling the brand.
