MICC

Business Context and Reporting Period

Company: The Magnum Ice Cream Company N.V. (TMICC)
Filing Type: Form 6-K (Stock Exchange Announcement)
Reporting Period: First Half (H1) ended June 30, 2026
Announcement Date: July 30, 2026
Context: TMICC, the world's leading ice cream business, reported its first half-year results as a standalone entity following its demerger from Unilever PLC in December 2025. The period includes the integration of acquisitions in India (completed March 30, 2026) and Portugal (completed April 1, 2026).

Key Financial Metrics

Note: H1 2025 comparatives are carve-out figures from Unilever. EPS was not calculated for H1 2025 as the company was not yet publicly listed.

Material Changes vs. Prior Period

• Revenue Growth: Driven by a balanced mix of volume (+2.5%) and price (+2.2%). Reported revenue growth of 4.2% included a +2.3% contribution from the India and Portugal acquisitions, offset by a -2.7% foreign currency translation impact (primarily due to a stronger Euro against the Turkish Lira and US Dollar).
• Profitability: Adjusted EBIT margin improved by 50 basis points to 15.3%, driven by productivity savings and pricing actions that offset cost inflation. However, Adjusted EBITDA margin declined 30 basis points to 18.7%, impacted by Transitional Service Agreements (TSAs) where previously allocated depreciation was charged as cash costs (-70 bps) and the India acquisition (-30 bps).
• Net Profit Decline: Despite higher Adjusted EBIT, Net Profit fell 24.8% to €349 million. This was primarily due to a €62 million increase in net finance costs (reflecting standalone financing), a €40 million net monetary loss from hyperinflation in Türkiye, and higher restructuring and tax costs.
• Cash Flow: Free Cash Flow nearly doubled to €273 million, driven by a favorable €173 million working capital movement (due to the interim operating model with Unilever preventing seasonal inventory cash outflows) and higher cash from EBIT.
• Debt Position: Net debt increased significantly to €3,264 million from €300 million in H1 2025. This reflects debt financing raised in late 2025 to fund the separation from Unilever and working capital requirements for the standalone business.

Guidance, Outlook, and Risks

Full Year 2026 Outlook

Management has reaffirmed its full-year outlook despite external uncertainties:

• Organic Sales Growth: Expected between 3% and 5%.
• Adjusted EBITDA Margin: Expected to improve by 40 to 60 basis points on a comparable perimeter basis with 2025. Reported improvement is expected to be 0 to 20 basis points due to the India acquisition impact.

Management Commentary

CEO Peter ter Kulve highlighted a "solid performance" powered by innovation and operational rigour. All four leading brands (Magnum, Ben & Jerry's, Cornetto, Heartbrand) grew. Ben & Jerry's saw accelerated growth in Q2 (+9.2%), and Yasso continued double-digit growth. The productivity programme delivered €90 million in savings in H1 2026, on track for €500 million in medium-term savings.

Risks and Contingencies

• Turkish Competition Authority (TCA): An investigation is underway regarding freezer cabinet usage in small retail outlets. An interim measure requires 30% of cabinet capacity in specific outlets to be allocated to competitors or left empty. Implementation is due by August 15, 2026.
• Hyperinflation: Türkiye continues to present risks, resulting in a €13 million net monetary loss in H1 2026 compared to a gain in the prior year.
• Geopolitical: Uncertainty in the Middle East may impact input costs, though direct regional exposure is stated to be limited.
• TSAs: The company is exiting remaining Transitional Service Agreements with Unilever by the end of 2027, which currently impact cash costs.

Investor Verification Checklist

• Debt Financing: Verify the terms and interest rates of the new debt facilities raised to fund the separation and acquisitions, given the sharp rise in net debt to €3.26 billion.
• Türkiye Regulatory Impact: Monitor the financial impact of the TCA interim measures on cabinet capacity and sales in Türkiye, a key growth market.
• Acquisition Integration: Assess the performance of the India (Kwality Wall's) and Portugal acquisitions post-integration, noting they contributed to revenue but pressured EBITDA margins in H1.
• Working Capital Normalization: Evaluate future cash flow projections, as the H1 2026 FCF benefit included a one-off favorable working capital movement due to the interim Unilever operating model which may not recur.
• Productivity Savings: Track the delivery of the remaining €410 million in planned productivity savings to ensure margin targets are met against inflationary pressures.