Magnum lifts 2026 growth outlook after quarterly beat

By Margaux Perrin and Mirko Miorelli

Oct 29 (Reuters) - Magnum Ice Cream Company raised its 2026 growth outlook on Thursday as a longer summer in Europe and product innovation drove higher sales of its Ben & Jerry's and other key brands.

The world's biggest ice cream company now sees its full-year organic sales growth at around 5.5% compared with its previous view of between 3% and 5%.

The update came after one of Europe's hottest summers on record, with temperatures well above historical averages in September, helping to lift demand for ice cream.

While describing heatwaves as "super profitable" CEO Peter ter Kulve told analysts they posed challenges around logistics.

"We are going to (have) more heatwaves, and all of us need to learn to work with these heatwaves."

"Imagine, during a heatwave on Sunday, that is a logistic tour de force," he said.

ORGANIC GROWTH, VOLUMES BEAT ESTIMATES

Magnum said that "extended" summer in Europe aided growth by about 2-3% in the quarter.

Shares rose as much as 4.6% shortly after the market opened, hitting their highest price since listing in Amsterdam late last year, but were flat by 1230 GMT.

Quarterly organic sales growth reached 9.6%, well above a company-provided consensus estimate of 4.6%, helped by volumes rising to 7.3%, above an estimate for a 2.8% growth.

Ter Kulve said fourth-quarter sales should be at a similar level to last year in what is typically a low season for Magnum.

The company confirmed its 2026 margin guidance, expecting productivity savings and operating leverage to offset higher costs driven by oil and energy prices.

Ter Kulve said he expected cost inflation of around 6% next year, adding the company would increase prices in some markets in response.

"In developed markets we'll need a little bit of pricing," he said.

All regions continued growth in the quarter, including its biggest US market, Magnum said.

ING analysts said in a note the implied strong performance in the US came despite a much wider use of the appetite-suppressing GLP-1 drugs in the country.

In response Magnum has been developing wellness-oriented products. Organic sales of its frozen yogurt brand Yasso grew 30%.

($1 = 0.8959 euros)

(Reporting by Margaux Perrin and Mirko Miorelli in Gdansk, editing by Anna Pruchnicka)