Unilever has chosen Amsterdam over London for its ice cream enterprise’ major itemizing, in a brand new blow to the Metropolis of London’s struggling preliminary public providing (IPO) market.
British multinational shopper items firm Unilever revealed that it could be demerging its ice cream enterprise later this yr.
The division will probably be primarily listed in Amsterdam following the spin off, with secondary listings in New York and London.
Nonetheless, Unilever itself has listings on all these markets, though it’s primarily listed in London as effectively.
Unilever’s share worth dropped 6.2% on Thursday afternoon.
The corporate’s ice cream department owns manufacturers equivalent to Ben & Jerry’s, Magnum, Breyers and Wall’s. Jean-François van Boxmeer, the present chair of Vodafone Group Plc and non-executive director of Heineken Holding N.V. has been revealed because the chair designate for the separated ice cream enterprise.
Unilever, which is headquartered in London, additionally owns an unlimited vary of different manufacturers together with, Dove, Sunsilk, Knorr, Hourglass, Vaseline, Residing Proof and extra.
The choice to decide on Amsterdam as the first itemizing for the ice cream enterprise comes as a brand new blow to London’s struggling inventory market, particularly given UK chancellor Rachel Reeves’ ongoing efforts to deliver extra listings to the capital.
Jonathan Reynolds, the UK enterprise secretary mentioned as reported by the Monetary Instances: “I might have appreciated Unilever to have listed within the UK. We do quite a lot of work speaking to an entire vary of companies to verify they perceive the political want for them to return to the UK. And there may be extra to do.”
The corporate’s chief govt officer (CEO), Hein Schumacher, revealed that it had gone with Amsterdam because the ice cream department’s senior administration and headquarters had been primarily based there.
Nonetheless, the ice cream division’s worldwide analysis and growth centre will stay within the UK. The Wall’s ice cream manufacturing facility, primarily based in Gloucester, can even function as regular.
Unilever mentioned within the full yr 2024 earnings press launch on the corporate’s web site: “The separation of Ice Cream is on monitor to finish by the tip of 2025. We’re making progress on the important thing workstreams, together with the authorized entities arrange, implementing the standalone working mannequin and making ready the carve-out financials.
“This determination follows a full assessment by the Board of separation choices, targeted on maximising returns for shareholders, setting the Ice Cream enterprise up for achievement and execution certainty by the tip of 2025.”
Unilever sees larger turnover and gross sales progress in 2024
Unilever launched its full yr 2024 outcomes on Thursday, revealing an underlying gross sales improve of 4.2%. This was primarily as a consequence of a 2.9% rise in quantity. Turnover inched up 1.9% final yr, hitting €60.8 billion.
Underlying working margin soared 170 foundation factors in 2024 to 18.4%, with gross margin additionally advancing 280 foundation factors.
Schumacher mentioned within the full yr 2024 earnings assertion: “We proceed to sharpen our portfolio, allocating capital to premium segments by buying scalable manufacturers in engaging markets, equivalent to K18 and Minimalist, and asserting the divestment of native meals manufacturers equivalent to Unox and Conimex, as we focus our meals portfolio on cooking aids and condiments classes.
“The great productiveness programme we introduced in March is being carried out at tempo and we’re forward of plan in serving to to create a leaner and extra accountable organisation. We’re taking decisive actions in Indonesia, the place long-standing challenges required a reset of the enterprise, and China, the place we’re reworking our go-to-market method throughout a market slowdown. We count on to see the advantages of those actions from the second half of 2025.”
Schumacher additionally highlighted that market progress is more likely to keep weaker within the first half of this yr, following a slowdown final yr.