“Ben & Jerry’s grew mid-single-digit and had an outstanding second quarter with 9.2% growth,” said Peter ter Kulve, CEO of Magnum Ice Cream Company (MICC), highlighting the brand’s unexpected summer surge. The intense heat across Europe triggered a spike in frozen treat sales, propelling first-half earnings above Wall Street forecasts. Revenue climbed to €4.7 billion, a €200 million increase from last year, driven by 4.7% organic sales growth in every region.
Ben & Jerry’s was the standout performer, enticing customers with new stick and sandwich innovations that expanded its reach in both Europe and the Americas. Alongside Ben & Jerry’s, Magnum, Cornetto, and Heartbrand all posted gains, while Yasso, the high-protein frozen pint line, continued its strong double-digit growth. This pattern mirrors recent trends seen in other consumer stocks benefiting from heat-driven demand swings.
Magnum’s margin improvements came from a cost-saving initiative started in early 2024 that has already saved €90 million, mostly via enhanced supply chain efficiency and waste reduction. These moves pushed adjusted EBIT up by 7.5% to €716 million, although net profit was weighed down by separation expenses related to the spin-off from Unilever. The company’s free cash flow almost doubled to €273 million, helped by a favorable working capital shift.
Despite a jump in financing costs to €72 million, reflecting broader global interest rate pressures after the Fed’s July decision to maintain high rates, Magnum’s stock held strong near €16.16, up 19% year-to-date and close to its record high. This earnings beat is one of several this summer, following Robinhood’s surprising results and Intel’s profit surge, signaling resilience in consumer and tech sectors amid economic uncertainty.
This content is informational and not investment advice.
