The Magnum Ice Cream Company listed on Monday with a valuation of some €7.8 billion, below analyst expectations, with some investors unsure its sugar-heavy product can succeed as consumers grow more health-conscious.
The firm, now the world’s largest stand-alone ice cream business, saw its debut in Amsterdam weighed down by index funds exiting after the long-awaited spin-off from parent Unilever. The stock was largely flat at about €12.8 a share.
Magnum’s listing is a test of its ability to lure consumers to indulgent snacks such as its Cornetto cones and Ben & Jerry’s ice creams at a time when GLP-1 weight-loss drugs have shaken up consumer trends and the Trump administration is pushing a “Make America Healthy Again” campaign in the United States.
“The sentiment is that people are focusing on healthier lifestyles,” said Jack Martin, investment director at Unilever shareholder Oberon Investments.
“There are regulatory headwinds against unhealthy foods because of the burden it places on healthcare systems, and GLP-1s are a potential headwind.”
Magnum’s stock recovered slightly from a sluggish opening to settle just above the reference price set on Friday, which valued the company at roughly eight times its expected 2025 adjusted ebitda, according to research firm Morningstar.
Ahead of the publication of Magnum’s prospectus, Barclays analysts predicted it would fetch an equity value of €10.1 billion to €10.8 billion and a share price above €20 per share.
Magnum rival Froneri, a joint venture between PAI Partners and Nestlé, secured investment in October valuing the firm at €15 billion. Magnum says it commands about 21 per cent of the $87 billion global ice cream market, ahead of Froneri’s 11 per cent.
Limited demand may have impacted the reference price, investment bank Degroof Petercam said in a note, while substantial separation costs from Unilever and the fact there will be no dividend in 2026 could be adding short-term pressure.
Unilever is shedding a business unit whose cold supply chain demands more complex operations than its other food brands and personal care products such as Dove soap and Axe deodorant.
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Magnum chief executive Peter ter Kulve, who wielded a replica Magnum ice cream the size of a tennis racquet at Monday’s bell-ringing ceremony, said the company would be “more agile, more focused and more ambitious than ever” as an independent listed company.
There is hope that Magnum, with a strong brand and market position, can perform better outside Unilever, said Chris Beckett, consumer staples analyst at Quilter Cheviot, although a sugar-heavy product that is often weather-dependent for sales meant a more volatile mix than some peers.
“There will be some natural selling before we see a more stable shareholder base, as everyone who now owns Magnum shares had no choice in the matter as existing Unilever holders,” said Beckett.
“For now, it is a bit of a ‘show me’ story, and the management team will have some work to do.” – Reuters
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