Magnum Ice Cream Company Shares Drop After Mixed Results, but Long-Term Case Remains Intact

Magnum Ice Cream Company (LON: MICC) shares have struggled to recover after last week’s sharp selloff, with the stock plunging more than 16 percent on Thursday following its first full-year results as a standalone business.

Despite the drop, the shares remain up 2.1 percent year to date. Analysts at Hargreaves Lansdown described the update as “mixed,” noting that the underlying growth outlook is largely unchanged even as the market reacted negatively to the initial miss.

TMICC reported revenue of €7.9 billion, slightly below the €8.0 billion expected, with underlying sales growth of 4.2 percent.

The disappointment stemmed from “softer than expected volume growth,” while underlying cash profit fell 6 percent to €1.3 billion, also below expectations due to “unfavourable currency moves” and higher service-agreement costs with Unilever, according to Hargreaves Lansdown.

Free cash flow dropped 95 percent to €38 million because of separation-related costs, and net debt climbed to €3.0 billion.

Still, analysts highlighted that “the growth outlook remains intact,” with TMICC guiding to organic sales growth of 3–5 percent in 2026 and an expected improvement in underlying cash profit margins.

Hargreaves Lansdown said that while the shares “fell sharply on the day,” the business retains strong fundamentals as the world’s largest ice cream group with a 21 percent global market share.

The broker added that the valuation “looks attractive compared to peers,” but warned that one-off separation costs and execution risks are likely to weigh on sentiment in the near term.

Longer term, analysts see opportunities from operational efficiencies and stronger brand investment, particularly in emerging markets, though dividends remain off the table until 2027.