Magnum earnings top forecasts but second-quarter sales growth slows

By Dimitri Rhodes

July 30 (Reuters) - Magnum Ice Cream reported first-half earnings above expectations on Thursday, helped by cost cuts following its spin-off from Unilever, but slower second-quarter sales growth and unchanged guidance tempered investor enthusiasm.

Adjusted half-year earnings before interest, taxes, depreciation and amortisation grew 3.2% organically to €880 million, beating a consensus of €843 million provided by the company.

Cost reductions in Magnum's supply chain and corporate functions drove earnings growth in the first half of 2026, it said. Its productivity programme, aimed at saving €500 million ($573 million) a year in the medium term, delivered €90 million in savings between January and June.

Organic sales grew 4.7% in the first half, well above the 3.4% expected by analysts polled by the company.

The results came during what is shaping up to be one of Europe's hottest summers on record, a period that would normally be expected to support ice-cream demand.

However, second-quarter sales growth slowed to 4.9% from 7% a year earlier despite favourable summer weather in Europe.

"Given favourable European summer weather, this is a fairly soft result relative to market conditions," Morningstar analyst Svetlana Menshchikova told Reuters.

ING analysts said the first-half beat was driven by stronger-than-expected volumes and pricing, but questioned the company's decision to maintain guidance after such a strong first half.

Jefferies said unchanged guidance suggested limited visibility beyond the summer period.

Chief Executive Peter ter Kulve said growth would depend primarily on execution.

"It is mainly execution that should be driving our growth," he told journalists.

Finance chief Abhijit Bhattacharya told investors margins would need to improve further in the second half for Magnum to achieve its full-year targets.

Shares, which have gained nearly 25% since the December listing, were little changed by midday after falling as much as 5% earlier in the session.

($1 = 0.8725 euros)

(Reporting by Dimitri Rhodes in Gdansk, editing by Milla Nissi-Prussak and Matt Scuffham)