Unilever's Sales Fall Short; Ben and Jerry's Set for Multiple Stock Listings

On Thursday, Unilever, a leader in consumer goods, announced sales growth that didn't quite meet expectations and signaled a tepid beginning for 2025, although recovery is anticipated in the latter part of the year.

An update was also shared regarding the separation of its ice cream business, known for brands like Ben and Jerry's and Magnum. Unilever indicated it plans to execute a triple listing for this demerged unit.

During the fourth quarter, Unilever reported a 4% increase in underlying sales, slightly below the 4.1% growth analysts predicted.

Throughout the year, underlying sales advanced by 4.2%, just under the consensus forecast of 4.3%. The operating margin was consistent with projections, registering at 18.4% against an estimated 18.3%.

Following these announcements, Unilever's shares declined by 6.3% as of 8:29 a.m. London time.

CEO Hein Schumacher commented in a statement that the past year was filled with significant moves aimed at enhancing Unilever's consistent performance.

He noted, "Market expansion, which decelerated over 2024, is predicted to remain mild in the initial half of 2025."

Looking ahead to 2025, the British company anticipates annual sales growth to align with its long-term range of 3% to 5%, along with a slight boost in operating margins expected in the year’s second half.

With a portfolio of around 400 brands, Unilever is considering divesting several food categories with total sales close to 1 billion euros ($1.04 billion), as revealed by Schumacher in an interview with a Dutch financial publication last December.

Specific brands weren't mentioned, but earlier, in March, Unilever indicated potential plans of this nature.

On Thursday, Unilever communicated that the division of its ice cream arm will proceed via a demerger. The stock will be publicly listed in Amsterdam, London, and New York—mirroring where Unilever's current shares are traded—and aims to wrap up by the close of 2025.

Schumacher told CNBC’s Julianna Tatelbaum, "The demerger is progressing as planned," confirming Amsterdam will take the lead listing position.

On whether a sale of the ice cream unit is still being considered, Schumacher emphasized the primary goal is to complete the demerger process effectively, indicating that all company efforts are targeted towards this objective.