Credit FAQ: Unilever Streamlines Its Portfolio By Separating Its Ice Cream Business

This report does not constitute a rating action. Unilever PLC recently announced its intention to separate its ice cream business, which delivered a turnover of €7.9 billion in 2023. The division has a global presence; access to both the in-home and out-of-home segments; and five of the top 10 ice cream brands by market share, including Wall's, Magnum, and Ben&Jerry's. The ice cream division is most likely to be demerged through a separation and potential listing, although management has stated that it also intends to explore other options to maximize returns for shareholders. Although S&P Global Ratings understands that the group will start the separation process immediately, we do not anticipate that the separation will be fully completed

...April 16, 2024 This report does not constitute a rating action. Unilever PLC recently announced its intention to separate its ice cream business, which delivered a turnover of 7.9 billion in 2023. The division has a global presence; access to both the in-home and out-of-home segments; and five of the top 10 ice cream brands by market share, including Wall's, Magnum, and Ben & Jerry's. The ice cream division is most likely to be demerged through a separation and potential listing, although management has stated that it also intends to explore other options to maximize returns for shareholders. Although S&P Global Ratings understands that the group will start the separation process immediately, we do not anticipate that the separation will be fully completed until the end of 2025. The separation of its ice cream business is a significant move by Unilever. Combined with a series of other disposals, it demonstrates that the group is attempting to shift its portfolio into stronger growing and...

Commentary