Magnum Ice Cream Q1 Earnings Call Highlights

Key Points

• Magnum Ice Cream reported an encouraging Q1 with organic sales growth of 4.5% (2.9% volume, 1.6% price), while reported revenue was down ~1.2% YoY due to a ~5.5% foreign-exchange headwind, and management reaffirmed full-year guidance.
• Growth was broad-based and led by EMEA (+7.9% organic) and gains in the U.S. from Yasso and Popsicle; the company also completed acquisitions of its India and Portugal businesses — India volumes are strong (Magnum +50%) but profitability remains weak as the business is being scaled.
• CFO noted commodity tailwinds (cocoa, dairy, palm oil) partially offset energy/fuel headwinds and management plans to mitigate remaining pressure via revenue management and productivity; the company reiterated targets of 3–5% organic sales growth and 40–60 bps adjusted EBITDA margin improvement on a comparable perimeter (reported improvement 0–20 bps due to the India acquisition).

Magnum Ice Cream NYSE: MICC reported what CEO Peter ter Kulve called “an encouraging start to 2026,” delivering organic sales growth of 4.5% in the first quarter, with 2.9% from volume and 1.6% from price. Management reaffirmed full-year guidance despite what ter Kulve described as “heightened uncertainty in the global environment, particularly in the Middle East.”

Revenue was “nearly EUR 1.8 billion,” down 1.2% year over year, which ter Kulve said was “entirely driven by foreign exchange,” citing a 5.5% translation headwind from a stronger euro. The company also noted that India and Portugal were not in the Q1 reporting perimeter and instead paid royalties for use of company brands, which were recognized in revenue and growth metrics. Excluding those royalties, ter Kulve said underlying organic sales growth was 4.7% and underlying price growth was 1.8%.

Regional performance led by EMEA; Europe and ANZ supported by innovation

Ter Kulve said growth was “broad-based,” with every region contributing. In Europe and ANZ, organic sales grew 4.6% excluding royalties, with volumes up 4.3% and price up 0.3% (excluding royalties). Germany and the U.K. posted high single-digit growth, while Italy remained “a work in progress,” as the company focuses on improving distribution and point-of-sale execution there.

In the Americas, organic sales rose 2.6%. The U.S. grew 3.2% organically with 1.8% volume growth, which ter Kulve attributed to strong performances from Yasso and Popsicle, both of which delivered double-digit organic sales growth. Ben & Jerry’s grew low single-digit in the U.S. as new formats launched, while Brazil declined during the quarter as the company continued a turnaround plan focused on innovation, more targeted promotions and pricing actions, and increased distribution.

EMEA was the strongest-performing region at 7.9% organic sales growth, with both volume and price contributing. Ter Kulve highlighted double-digit growth in Turkey and Pakistan, and a strong seasonal opening in China driven by innovation.

Portfolio and innovation: formats and occasions emphasized

Ter Kulve credited innovation as a key driver of Q1 performance and said the company is increasingly focused on formats and occasions, not just flavor rotations. “When you really structurally want to drive growth, you need to make your brands relevant in different occasions,” he said, pointing to examples such as moving Ben & Jerry’s from pints into sandwich formats aimed at on-the-go consumption.

Brand-level commentary included:

• Magnum: mid-single-digit organic sales growth, supported by Magnum Pistachio and peach launches across the EU and Turkey, plus continued rollout of BonBons and cone formats in Europe.
• Ben & Jerry’s: flat overall in Q1. Ter Kulve said the new sandwich and bar formats have been “well received,” and noted that in the U.S., Ben & Jerry’s innovations ranked in the top 10 SKUs, including four of the top 10 in super premium.
• Cornetto: low single-digit growth, supported by Pistachio Max in Europe and Turkey and new flavors supporting a strong opening in China.
• Heartbrand: high single-digit growth, driven by products including Twister Freeze, Minecraft Stick, Volcanix, a five-layer chocolate stick, Solero Bonbons in multiple European markets, and Ice Ball Red Grape in Southeast Asia.
• Yasso: ter Kulve singled out Yasso Pints as an example of “format innovation that expands the category,” moving from sticks to pints and “unlocking new consumption occasions and new shelf space.”

Separation updates and perimeter changes: India and Portugal acquired

Ter Kulve said all scheduled Q1 TSA (transition services agreement) exits were completed on time, and the company remains on track to finalize remaining TSA exits by the end of 2027. He also provided an update on changes to the business perimeter: the company completed the acquisition of its India business on March 30 and acquired the Portugal business on April 1. Both will be reflected in consolidated results from Q2 onward.

On India, ter Kulve described a significant overhaul implemented last year, including shifting from vegetable-fat “frozen dessert” products to dairy ice cream, changing pricing to align with “core snacking price points,” building a new team, and changing distribution by investing in cabinets and distributors with cold stores. He said volumes are picking up, though “profitability is still not very good” as the company invests behind growth and supply chain capacity. Ter Kulve added that with current growth rates, the business will need to expand from one factory to four over time, and said “Magnum is growing +50% at the moment” in India.

In Brazil, ter Kulve said the company replaced management due to execution issues, but added that pricing and portfolio positioning are also problems. “Our pricing is not correct. We’re not in line with core snacking price points,” he said, adding that portfolio adjustments will take time.

Costs, commodity tailwinds, and guidance reaffirmed amid Middle East uncertainty

CFO Abhijit Bhattacharya told analysts the company has seen “a little bit of tailwind” from cocoa, dairy, and palm oil compared to the assumptions it started the year with, partially offsetting headwinds linked to fuel costs amid Middle East-related disruption. Responding to questions about why dairy and palm oil were tailwinds despite rising market indices, Bhattacharya said the company covered input costs early in the year at levels better than prior assumptions.

Bhattacharya also described the company’s mitigation approach to oil-linked inflation and energy-related headwinds, outlining three broad levers:

• Revenue growth management, including discounts, expected to recover about one-quarter of headwinds
• Commodity tailwinds versus start-of-year assumptions, offsetting about one-quarter
• Acceleration of productivity measures to address the remaining half

On advertising and promotion, Bhattacharya said the company would continue to spend what it needs to support brands and “not cut advertising to make the targets,” while noting a shift toward more digital content creation following an agency change.

Management reaffirmed its full-year outlook, calling for organic sales growth of 3% to 5% and adjusted EBITDA margin improvement of 40 to 60 basis points on a comparable perimeter basis versus 2025. Ter Kulve said the reported adjusted EBITDA margin improvement is expected to be 0 to 20 basis points, “primarily due to the impact of the acquisition of the India business.” He also reiterated that improvements are expected to be more weighted to the second half of 2026 due to TSA phasing and cocoa pricing benefits.

In Q&A, ter Kulve downplayed the impact of tourism risk in Turkey, saying about 5% of company sales in the country goes to tourists. He also said Easter timing was “marginal” for Q1 results, while highlighting the importance of festival activations such as Ramadan and Chinese New Year for seasonal demand creation.

Ter Kulve repeatedly returned to execution as a central theme, saying improvements in the company’s “Frontline First” model are boosting availability across channels, increasing distribution points, and supporting freezer and cabinet deployments. He said the company believes growing its cabinet fleet and distribution can contribute roughly 0.5% to 1% of additional growth, and described cabinet deployment as operationally intensive, involving distributors, IT systems, replenishment, and maintenance. As one example, he said the company placed and activated 50,000 cabinets in India over a two-month period and reiterated prior comments that new cabinets typically pay back in two to three years.

About Magnum Ice Cream NYSE: MICC

The Magnum Ice Cream Company N.V. engages in ice cream business. The Magnum Ice Cream Company N.V. is based in Amsterdam, Noord-Holland, Netherlands.

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