Unilever separates Ben & Jerry’s and Magnum from the rest of the group

The British hygiene and food giant Unilever announced on Tuesday the separation of its ice cream division, which notably includes the giants Ben & Jerry’s and Magnum, but whose sales disappointed last year.

“A split (…) is the most likely separation route” but “other options will be considered in order to maximize returns for shareholders,” Unilever said in a press release.

Unilever’s ice cream division achieved a turnover of 7.9 billion euros in 2023. But the group described last month as “disappointing” the modest growth displayed by this division, when publishing net profit down 15% last year for the entire group.

Ice cream “presents distinct characteristics compared to other operational activities”, argues Unilever, citing in particular “a supply chain and points of sale supporting frozen products” or even “greater seasonality”.

After the separation, which Unilever hopes to finalize by the end of 2025, the management team “will have operational and financial flexibility (…) to support the company’s distinct strategy”, adds Unilever.

The group was also marked in 2021 by a dispute with its American subsidiary Ben & Jerry’s, which considered that the sale of its ice cream in Israeli settlements in the West Bank and East Jerusalem was not “compatible” with its “values” , a conflict “resolved” in December 2022 by a confidential agreement.

Unilever also announced on Tuesday the launch of a “major productivity program” which should generate total savings of around 800 million euros over the next three years and which “should have an impact on around 7,500 jobs” in the world, mainly office jobs.

“These proposals will be subject to consultation,” specifies Unilever, which indicates that its restructuring costs will be around 1.2% of its turnover over the next three years, up slightly compared to previous projections. .

Unilever’s announcements are part of a strategic plan unveiled in October to revive its overall performance, and the group assures that they will boost its sales growth and margins.

The group’s stock soared 5.39% to 4,017 pence on Tuesday morning shortly after the opening of the London Stock Exchange.

© 2024 AFP

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