Shares of The Magnum Ice Cream Company (LSE:MIC) surged more than 11% on Thursday after the group reported first-quarter 2026 organic sales growth ahead of expectations, driven primarily by stronger volumes across major markets, while keeping its full-year guidance unchanged.
Organic sales increased 4.5% during the quarter, exceeding the 2.6% consensus forecast, supported by volume growth of 2.9% alongside a 1.6% contribution from pricing.
Total revenue came in at €1.77 billion, representing a 1.2% decline from a year earlier due to a negative foreign exchange impact of 5.5%.
Performance was broadly positive across regions. Europe and ANZ delivered organic sales growth of around 4%, comfortably above the 1.1% consensus estimate, with volumes rising approximately 4.3%.
In the Americas, organic sales grew about 2.6%, beating expectations of 1.4%, although volumes were broadly flat. Brazil remained a weaker market, while volumes in the United States increased 1.8%.
The AMEA region posted organic growth of roughly 7.9%, slightly above the 7.1% consensus, driven by volume gains of about 4.9%. Türkiye and Pakistan recorded double-digit expansion, while China achieved high single-digit growth.
The company noted that both pricing and volume contributed to growth, with all regions delivering positive organic sales performance.
“We have had an encouraging start to 2026 and the ice cream category continues to grow. In Q1 organic sales grew across both volume and price, which is a testament to the breadth of our portfolio and our competitive execution,” chief executive Peter ter Kulve said.
According to Jefferies, the outperformance was largely volume-driven, with volumes significantly exceeding expectations, while pricing came in below forecasts.
The group reaffirmed its full-year 2026 outlook, guiding for organic sales growth of 3% to 5% and a reported adjusted EBITDA margin improvement of between 0 and 20 basis points.
Jefferies added that it does not expect a meaningful change to the current consensus full-year earnings per share estimate of €0.93 following the results.
Foreign exchange guidance was slightly improved, with the expected impact on first-half 2026 revenue revised to negative 2.8%, compared with a prior estimate of negative 4%.
The company also completed acquisitions in India and Portugal around the end of March and early April, which will begin contributing from the second quarter.
Management said it remains on track to exit the remaining transitional service agreements by the end of 2027.
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