Magnum Ice Cream Boosts Sales Outlook Amid European Heatwave and Strong Demand
The ice cream giant raised its annual sales forecast, driven by a 9.6% increase in the third quarter attributed to an extended summer and successful new product launches.
Magnum Ice Cream, a major player whose brands include Ben & Jerry's, Wall's, and Cornetto, has increased its annual sales outlook following a significant boost from the summer heatwave across Europe.
The company reported a 9.6% rise in sales during the third quarter, with an extended warm period contributing an additional 2% to 3% to this growth. This performance has led the Amsterdam-listed firm, which was spun out from Unilever in December, to project annual sales growth of approximately 5.5%, up from its previous forecast of around 5%.
Magnum, the world's largest ice cream manufacturer, also benefited from strong consumer demand for newer offerings, such as its pistachio Magnum range, a revitalized Solero product, and various new Cornetto flavors. Chief executive Peter ter Kulve stated that sales of leading brands have accelerated, fueled by innovation. He noted growth across all regions, including the United States, Magnum's largest market, and attributed the success to improved execution and operational efficiency.
The company also implemented price increases, which accounted for 2.2% of its quarterly sales growth. These adjustments were made to offset rising energy and oil costs, influenced by geopolitical events such as the Iran war.