Magnum Ice cream - dividend growth portfolio

Hello, A new position was made in the Dividend growth portfolio.

As a Remember: The dividend growth portfolio’s goal is not to beat markets. It is a small portfolio compared to the Emerging value portfolio.

This portfolio’s goal is to provide

• Some upside

• Some income

• While limiting downside relative to the initial investment

This is a replacement for some cash. Cash earns zero and loses value. If these stocks do 5% a year with 3% dividends, I am happy.

I want to be flexible and earn some money on my cash. This is a strategy that I am not aware of being done before.

The traditional allocation is Stocks then bonds then cash.

I have Stocks, some bonds and now dividend growth stocks, then cash.

After many years, I found that dividend growth stocks in defensive industries bought at very low valuations exhibit all these characteristics.

These stocks have been selling off for about two years. Quality is underrated at the moment.

An Ice cream company.

The new addition for this portfolio is a very tasty company.

A spin off, sold off by impatient funds and investors.

A company that grows slowly, but has strong pricing power.

A company whose products are immensely popular with kids and adults.

The Magnum Ice cream company is a spin off from Unilever.

At 6.84 Billion Euros market capitalisation, it is a small caps by global standards.

It trades in Amsterdam, London and New York.

The ICE Cream market is a slow growth steady market, with projections of 3 to 4% growth in the long term.

Here is the revenue by Brand. My favorite being Magnum.

The business is globally diversified with a heavy weight towards Europe.

Disappointing 2025 results:

The company had operating Profit for the full year of € 599 million (FY 2024: € 764 million), reflecting planned net increase of € 118 million in separation and restructuring costs in 2025 compared to 2024 and forex translation effect.

After that year, we should see the one of costs decrease, and a slight increase in interest costs.

All in all, we trade at a forward EV/EBITDA of 7.6 and forward P/E of 12 (estimates).

The defensive nature of the business combined with the low valuation fits this target.

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The Q1 trading update confirms good results in volume (2.9%) and pricing (1.6%). It is affected by the collapse of the USD to the Euro, but this not relevant in calculating business performance.

Capital allocation

In March and April, it concluded an acquisition in India from Unilever, with a mandatory take over planned.

Amsterdam, 30 March 2026

The Magnum Ice Cream Company (TMICC), the world’s largest ice cream company, today announced that it has completed the acquisition of 61.9% of the equity shares of Kwality Wall’s (India) Limited (KWIL) under the terms of the Share Purchase Agreement with Unilever dated June 25, 2025.

KWIL will continue to trade on BSE and NSE, the Indian stock exchanges, as a majority-owned subsidiary of the TMICC Group.

The Magnum Ice Cream company trades at 12 times forward earnings. The 2025 and 2026 year are transition years with one off costs related to the spin off and the new life as an independent company.

There is a cost cutting plan in place as well as increased Capex for the next two years.

The dividend will be around half of adjusted net income in the mid term.

This kind of value slow grower defensive companies are what we can find in the Dividend growth portfolio below: So far, only one stock is down 10%, the one most exposed to EMs, one 2% and the 6 others are up or flat.

Just a quick article before the week end! These defensive companies don’t need long presentations and my main focus is on the Emerging Value portfolio.

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