Magnum, the ice cream label owned by Unilever (LSE:ULVR), has unveiled a set of financial targets as it gets ready to split from its parent company later this year.
Ahead of a capital markets day presentation, Magnum projected medium-term organic sales growth of 3% to 5% beginning in fiscal 2026. The forecast assumes overall market growth of 3% to 4% and, according to management, should not be expected to materialize every year.
RBC Capital Markets noted that Magnum’s goals exceed current Visible Alpha consensus estimates for Unilever’s ice cream unit, which sit at 2.7% for 2026 and 2.8% for 2027. The company also stressed that its business model faces only a limited seasonal impact.
The brand also laid out further targets, including annual adjusted EBITDA margin improvements of 40 to 60 basis points starting in 2026. Free cash flow is expected to fall between €0.8 billion and €1 billion in 2028 and 2029 once capital expenditures normalize at 4% to 5% of sales.
Magnum plans to maintain a consistent dividend strategy, with a payout ratio of 40% to 60% of adjusted net income. Its first dividend is slated for 2027, tied to fiscal 2026 results.
The formal separation from Unilever is set for mid-November 2025, after which Magnum will trade independently as a listed company. Following the split, Unilever will retain a minority stake of under 20%.
RBC analysts called Magnum’s objectives “ambitious,” citing the gap between management’s projections and broader market expectations for the division’s performance.
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