Unilever to separate its ice cream business, including Ben & Jerry's; shares rise 5%

• Unilever announced on Tuesday that it is separating its ice cream business, which includes Ben & Jerry's and Magnum, as part of a restructuring plan that will affect 7,500 jobs.
• The restructuring of the sentence will be completed by the end of 2025.
• Unilever stated that the restructuring would aid in its goal of becoming a "simpler, more concentrated company" with four distinct business divisions.

On Tuesday, the stock price of a well-known consumer goods company increased by over 5% following the announcement of a plan to separate its ice cream division, which includes popular brands such as Ben & Jerry's and Magnum, as part of a restructuring that will affect approximately 7,500 jobs.

The restructuring costs for the proposed changes are now estimated to be around 1.2% of Group turnover for the next three years, which will impact approximately 7,500 predominantly office-based roles globally.

At 8:10 London time, Unilever's shares rose 5.6% following the announcement.

The company anticipates that the restructuring will be completed by the end of 2025 and will result in total cost savings of approximately 800 million euros ($868.3 million).

Unilever stated that the restructuring would enable it to become a more streamlined company with four clearly defined business divisions in the areas of beauty and wellbeing, personal care, home care, and nutrition.

The ice cream division of the company, which generated 7.9 billion euros in revenue in 2023, would perform better as a standalone business.

Unilever has not finalized plans for the spinoff, but a "demerger" is the most probable separation route.

The final decision will determine the costs of the move.

In July 2023, CEO Hein Schumacher implemented a radical move as part of a broader overhaul of the company.

Over the past few years, Unilever has been under increasing pressure from activist investors to reform its extensive operations due to significant fluctuations in its share price. The company's stock has dropped by approximately 6% compared to the previous year.