February 13 (Reuters) – Unilever (ULVR.L), the company behind brands such as Ben & Jerry’s, Dove, and Hellmann’s, announced on Thursday that it has chosen Amsterdam over London and New York for the primary listing of its ice cream division. The decision follows a disappointing earnings report that sent its shares down nearly 7%, erasing approximately £8.5 billion from its market value.
The company also warned of a slower start to 2025, attributing the decline to weaker market growth in the near term. The forecasted slowdown prompted concern among investors, including Tineke Frikkee, a portfolio manager at Waverton Investment Management, who cited a lack of momentum for the first half of the year and potential risks to meeting quarterly forecasts.
For the fourth quarter of 2024, Unilever reported underlying sales growth of 4%, slightly below the 4.1% forecast by analysts. The company has projected underlying sales growth for 2025 to fall within its multi-year target range of 3% to 5%.
CEO Hein Schumacher had previously outlined plans for cost-cutting measures, including separating the ice cream division through a demerger and reducing the workforce to address persistent underperformance.
The ice cream business, which includes well-known brands such as Magnum and Wall’s, posted a turnover of €8.3 billion ($8.6 billion) in 2024. While it will have secondary listings in London and New York, the primary listing will be in Amsterdam, which is likely to disappoint UK officials, including Finance Minister Rachel Reeves, who had met with Unilever executives in September to discuss investment in the UK.
In the Netherlands, Economic Affairs Minister Dirk Beljaarts hailed Unilever’s decision as a sign of the company’s confidence in the country and its competitive business climate. However, the decision had been foreshadowed by commitments Unilever made to the Dutch government in 2020, pledging to choose the Netherlands if it spun off its food and refreshment business.
The announcement comes amid an ongoing dispute between Unilever and Ben & Jerry’s, which filed a censorship lawsuit last month, accusing its parent company of suppressing a statement that referenced former President Donald Trump. The tension between the two companies has been ongoing since 2021, when Ben & Jerry’s halted sales in the Israeli-occupied West Bank.
Despite the legal conflict, Schumacher expressed confidence that it would not hinder the planned Amsterdam listing. Analysts from Barclays had previously speculated that a demerger was the most likely outcome, noting that consumer staples businesses like Unilever’s ice cream division tend to perform well as independent entities.
The decision to list in Amsterdam may also be influenced by the recent performance of other consumer health companies, such as Haleon, which was spun off from GSK in 2022. Haleon’s market value has increased by around £5 billion since its listing, reaching £35.4 billion.
Jean-Francois van Boxmeer has been appointed as chair designate for the separated ice cream business.
In the UK, Business Minister Jonathan Reynolds acknowledged that the government still has work to do to attract stock market listings. While reforms were introduced last year to enhance London’s competitiveness post-Brexit, the changes have yet to produce a significant increase in IPOs. Notably, UK-listed companies like Ashtead Group have opted to list in New York, seeking higher valuations.
UK officials are also hopeful that online fast-fashion retailer Shein will list in London, with reports suggesting a potential $50 billion valuation.
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