Unilever PLC (ULVR, UL) Stock Jumps After Magnum Demerger and Share Consolidation

Unilever PLC’s stock is back on investors’ radar after a flurry of December corporate actions: the long‑planned spin‑off of its ice cream arm into The Magnum Ice Cream Company, an 8‑for‑9 share consolidation, and fresh guidance on margins and M&A. As of 10 December 2025, the reshaped consumer‑goods group looks leaner, more focused – and still somewhat controversial on valuation.

Key takeaways

Share price whiplash, then a sharp rally. London‑listed Unilever (LON: ULVR) slid to around 4,160p on 8 December as Magnum was carved out, then rebounded into the mid‑4,800p range on 9–10 December. ^[1]
On Euronext Amsterdam, Unilever closed at €55.5 on 10 December, up about 16% in a single session, while the New York ADR (NYSE: UL) traded near $64.04, up roughly 15.8% from the prior close. ^[2]
Magnum Ice Cream Company is now separate – and Unilever has fewer, more valuable shares. The demerger of the roughly €8.6 billion ice cream business completed on 6 December 2025, with The Magnum Ice Cream Company N.V. (MICC) now trading in Amsterdam, London and New York. Unilever simultaneously pushed through an 8‑for‑9 share consolidation, giving holders eight new shares (or ADSs) for every nine old ones to keep per‑share metrics like EPS broadly comparable. ^[3]
Management is promising higher margins and a deal pipeline. CEO Fernando Fernandez has earmarked roughly €1.5 billion per year for M&A, with a particular focus on the US, and says the “de‑iced” Unilever should deliver at least 19.5% operating margin in the second half of 2025, up from about 18.5% when the ice cream business was included. ^[4]
2025 performance: slow but improving growth. Unilever’s underlying sales grew 3.0% in Q1, 3.4% in the first half and 3.9% in Q3 2025, with volume back in positive territory and “Power Brands” contributing over 75% of turnover. ^[5]
Analysts are split. Company‑published sell‑side consensus points to 3.7% underlying sales growth for full‑year 2025, about mid‑range of Unilever’s 3–5% target. ^[6]
Barclays and JPMorgan describe the post‑ice‑cream Unilever as entering a “game‑changing” period with a potential 2026 inflection in volume growth, while UBS and Jefferies both keep Sell ratings, with UBS trimming its price target from 4,635p to 4,440p. ^[7]

Unilever share price today: from spin‑off jitters to relief rally

The share price action around the demerger illustrates how messy big corporate restructurings can look in real time.

On 8 December 2025, the first trading day after the Magnum Ice Cream Company spin‑off, Unilever’s London stock closed near 4,160p, weighed down by uncertainty and broader weakness in European consumer staples; Reuters reported a 3.7% drop on the day. ^[8]
On 9 December, once details of the 8‑for‑9 share consolidation and the new share count were digested, the LSE listing snapped back, closing at 4,846.5p with heavy volume. ^[9]
Data from the Financial Times shows Unilever trading around 4,819p on 10 December, still in that mid‑4,800s band and roughly 4–5% above its 52‑week low of 4,618p but below its 5,260p high. ^[10]

Across the Atlantic, the ADR (UL) has mirrored the move. WallStreetZen estimates UL closed at $64.04 as of 9 December, up 15.8% in one session and about 17.9% above its 52‑week low. ^[11]

On Euronext Amsterdam, an AI‑driven analysis from Meyka highlights a 16.28% jump on 10 December, with Unilever closing at €55.5 versus €47.73 the previous day and trading near its 52‑week high. ^[12]

How much of that jump is “real”?

The share consolidation distorts simple price comparisons. An 8‑for‑9 consolidation reduces the number of shares by about 11%, so – mechanically – the per‑share price should rise about 12.5% even if the total equity value is unchanged.

Looking at the London numbers:

Pre‑consolidation close (8 Dec): ~4,160p
“Purely mechanical” post‑consolidation price (if nothing else changed): roughly in the 4,680p area
Actual close on 9 Dec: 4,846.5p

Roughly speaking, most of the move can be explained by arithmetic, with an extra few percent reflecting a re‑rating as investors warmed to the new structure and the separate Magnum listing.

The key takeaway: the business didn’t suddenly become 16% more profitable overnight, but the structure did change in ways that could affect growth, margins and capital allocation over the next several years.

Magnum Ice Cream Company spin‑off: separating the scoop

Unilever has been signalling for more than a year that ice cream would be separated from the rest of the group. December 2025 is when it actually happened.

What just happened?

Completion date: Unilever confirmed that the demerger of its global ice cream business into The Magnum Ice Cream Company N.V. (TMICC) completed on Saturday 6 December 2025. ^[13]
Listings: MICC shares began trading on 8 December:
- 09:00 on Euronext Amsterdam (ticker MICC)
- 08:00 on the London Stock Exchange
- 09:30 on the New York Stock Exchange ^[14]

Unilever describes the spin‑off as part of its “Growth Action Plan” (GAP 2030), which focuses the parent on four business groups – Beauty & Wellbeing, Personal Care, Home Care and Foods – led by 30 “Power Brands” and supported by multi‑year innovation programmes. ^[15]

Why the 8‑for‑9 share consolidation?

At the 21 October 2025 General Meeting, shareholders approved a consolidation (or subdivision plus consolidation) of Unilever’s ordinary shares in connection with the demerger. The logic is:

Magnum represented a meaningful chunk of sales and earnings, so spinning it off would mechanically reduce earnings per share (EPS) and dividends per share (DPS) at the parent.
By reducing the number of shares in circulation – 8 new shares for every 9 old ones, for both ordinary shares and ADSs – Unilever keeps key per‑share metrics broadly in line with pre‑demerger levels. ^[16]

A regulatory notice shows:

The new shares have a nominal value of 3.5 pence each.
Post‑consolidation, Unilever’s share capital consists of 2,232,630,400 ordinary shares, of which about 2.18 billion carry voting rights (the rest held as treasury shares or by group companies). ^[17]

Fractional entitlements are being aggregated and sold in the market, with net proceeds distributed to shareholders – a standard clean‑up mechanism in consolidations. ^[18]

Capital allocation and margin targets: what management is now promising

With Magnum out, Unilever is effectively a pure‑play household and personal products group with a refreshed balance sheet and fewer seasonal swings.

A €1.5bn‑a‑year M&A war chest

Speaking at a JPMorgan event on 9 December 2025, CEO Fernando Fernandez said Unilever is now:

Allocating around €1.5 billion (about $1.74 billion) per year for mergers and acquisitions.
Focusing heavily on opportunities in the United States. ^[19]

This is very much in line with the company’s strategy over the past two years – buying into premium, higher‑growth niches (for example, the acquisition of US men’s-care brand Dr. Squatch in September 2025) and exiting lower‑growth or non‑core units like The Vegetarian Butcher. ^[20]

Margin ambitions: 18.5%… 19.5%… and beyond?

Unilever’s own guidance and third‑party analysis sketch out a clear margin narrative:

In early 2025, management said it expected full‑year 2025 underlying sales growth of 3–5% with a modest improvement in underlying operating margin versus 18.4% in 2024. ^[21]
By the half‑year, Unilever was targeting second‑half 2025 margins of at least 18.5%, helped by productivity gains and the ongoing separation of Ice Cream. ^[22]
AInvest, summarising the company’s restructuring plan, notes that:
- Unilever has incurred about €850 million in restructuring costs aimed at simplifying operations.
- The programme targets €800 million in savings by 2025 and has already helped push gross margin to 45%, the highest in a decade.
- Management and some analysts see underlying operating margins reaching at least 18.5% in the second half of 2025 and ROIC around 18.1%. ^[23]
Post‑demerger, Reuters reports that Unilever expects its second‑half operating margin to be at least 19.5% when measured on the post‑ice‑cream perimeter (vs ~18.5% including Ice Cream). ^[24]

In other words, the entire restructuring – job cuts, portfolio pruning, Magnum spin‑off, share consolidation – is aimed at building a faster‑growing, higher‑margin Unilever.

How 2025 is shaping up operationally

Behind the stock chart and corporate moves, Unilever’s 2025 trading has been solid rather than spectacular.

Q1 2025: soft markets, steady progress

In its April trading update, Unilever reported:

3.0% underlying sales growth in Q1 2025.
Growth coming from both volume (1.3%) and price (1.7%).
Continued reconfirmation of the 3–5% full‑year growth target and expectation of a modest margin improvement. ^[25]

Management flagged softer market conditions versus 2024, particularly in some emerging markets, but emphasised that its “Power Brands” (including Dove, Vaseline and Magnum at the time) were still gaining share. ^[26]

H1 2025: Power Brands and developed markets do the heavy lifting

By the first half, Unilever’s messaging turned more confident:

Underlying sales growth:3.4% (1.5% from volume, 1.9% from price).
Underlying operating margin:19.3%, down 30 bps year‑on‑year due to increased brand investment and separation costs. ^[27]
Power Brands: representing over 75% of turnover and growing 3.8% in H1, again led by Dove and premium beauty/wellbeing lines. ^[28]
Developed markets: about 44% of turnover, growing 4.3% with strong volume contributions, particularly in North America.
Emerging markets: growing 2.8%, with India improving, China and Indonesia still a drag but expected to accelerate in the second half. ^[29]

Unilever reiterated that full‑year 2025 USG should land within 3–5%, with second‑half growth ahead of first‑half despite subdued market conditions. ^[30]

Q3 2025: acceleration and Magnum almost out the door

The 23 October 2025 Q3 trading statement showed momentum improving:

Group USG:3.9%, comprising 1.5% volume and 2.4% price. ^[31]
Excluding Ice Cream, underlying sales grew 4.0%, with volume growth of 1.7% – closer to Unilever’s medium‑term volume ambitions. ^[32]
Segment performance (Q3 USG):
- Beauty & Wellbeing: 5.1% (2.3% volume, 2.7% price)
- Personal Care: 4.1% (1.0% volume, 3.1% price)
- Home Care: 3.1% (2.5% volume, 0.6% price) ^[33]

Geographically, North America delivered 5.5% underlying sales growth, almost entirely volume‑driven, while Europe eked out 1.1% growth against a tough comparator. Emerging markets improved, with Asia Pacific Africa up 6.8% and Indonesia returning to growth. ^[34]

Q3 turnover fell 3.5% year‑on‑year to €14.7 billion, mainly due to currency and net disposals. Unilever nonetheless increased its quarterly dividend by 3% to €0.4528, signalling confidence in cash generation through the separation. ^[35]

Consensus forecasts and fresh analyst views

Company‑published consensus: mid‑range growth

Unilever’s own investor relations site aggregates sell‑side expectations (compiled between late September and mid‑October 2025). For underlying sales growth, the consensus table shows: ^[36]

Q3 2025: 3.7% USG (1.5% volume, 2.2% price) – very close to the 3.9% actually delivered.
Q4 2025: 4.4% USG (2.2% volume, 2.2% price).
Full‑year 2025: 3.7% USG, with 1.7% volume and 2.0% price.

That implies a modest acceleration into Q4, with more of the growth coming from volume – exactly what management has been promising under the Growth Action Plan.

Positive takes: “game‑changing” post‑ice‑cream Unilever

Although the full Proactive Investors article is paywalled, summaries aggregated by MarketBeat indicate that: ^[37]

Analysts at Barclays and JPMorgan see Unilever entering a “game‑changing” period now that the ice cream business has been scooped out.
Barclays reportedly frames 2026 as an “inflection year”, when volumes in the core business could improve more visibly and justify a higher earnings multiple.

Alternative‑data platform Meyka similarly notes strong fundamentals – including a price‑to‑earnings ratio near 24.8, return on equity around 29% and a dividend yield of roughly 3.25% – while cautioning that the stock’s RSI is creeping towards overbought territory after the latest spike. ^[38]

Cautious voices: UBS, Jefferies, RBC

Not everyone is cheering.

UBS analyst Guillaume Delmas reiterated his Sell rating on Unilever on 10 December 2025, cutting the price target from 4,635p to 4,440p. The note flags continued concerns about valuation and execution despite the Magnum spin‑off. ^[39]
MarketScreener’s feed shows Jefferies also reaffirming a Sell stance in early December, and RBC updating its price target and earnings estimates following the spin‑off (the detailed RBC numbers are behind a paywall). ^[40]

On balance, MarketBeat’s meta‑analysis presents Unilever (UL) as enjoying an average broker recommendation around “Moderate Buy”, but that aggregate masks a genuine split between more bullish “transformation” narratives and more sceptical, valuation‑driven views. ^[41]

Dividend reliability and balance sheet

Unilever’s dividend story remains central for many investors.

The company paid a €0.4528 interim dividend for Q3 2025, up about 3% on the prior year, and has stated it expects to pay the Q4 2025 dividend in full, even after the ice cream demerger. ^[42]
A mid‑2025 analysis by Insider Monkey/Yahoo Finance placed Unilever among the “Top 10 Safest Dividend Stocks in the UK”, highlighting its diversified portfolio and stable cash flows. ^[43]

The 6‑K filing around the share consolidation points to a sizeable equity base and low short interest (around 0.14% of the float), underlining that this is still very much a defensive, income‑oriented staple rather than a speculative name. ^[44]

Post‑demerger, the main questions are less about dividend safety and more about:

What long‑term payout ratio the “new” Unilever will target, given higher margin ambitions and a bigger M&A budget.
How much of future free cash flow will go to share buybacks, something the CEO has indicated could continue “if there is cash we will not sit on it,” according to Reuters summaries. ^[45]

Leadership and execution risk

Restructuring stories live or die on execution, and Unilever has reshuffled its top team accordingly.

Fernando Fernandez took over as CEO in early 2025, replacing Hein Schumacher. ^[46]
In September 2025, Unilever confirmed Srinivas (“Srini”) Phatak as permanent Chief Financial Officer, after a period as acting CFO. CEO Fernandez praised his “financial rigour” and focus on volume growth and margin expansion – exactly the levers investors are watching. ^[47]

Between the productivity programme (including around 7,500 office roles being cut) and the Magnum separation, Unilever has already delivered hundreds of millions of euros of cost savings – but also taken on about €850 million in restructuring costs. ^[48]

Key execution risks from here include:

Maintaining volume growth in emerging markets like China, Indonesia and Latin America in the face of macro headwinds. ^[49]
Integrating future acquisitions without diluting returns on capital.
Sustaining brand investment (particularly in premium segments) while still expanding margins.

Stock outlook: what the December 2025 setup suggests

Putting the pieces together, December 2025 leaves Unilever in an unusual but intriguing position:

Cleaner story: Investors now have a pure‑play staples company plus a separately listed global ice cream business instead of a conglomerate with divergent economics.
Mathematically higher share price, structurally higher margin target: The 8‑for‑9 share consolidation boosts the per‑share price mechanically, but management’s 19.5%+ second‑half margin target suggests at least some of the re‑rating is rooted in genuine efficiency gains and portfolio mix. ^[50]
Growth still mid‑single‑digit, but more volume‑driven: Consensus and company guidance both cluster around 3.5–4% underlying sales growth, with a healthier contribution from volume as 2025 progresses. ^[51]
Valuation debate is alive and well:
- Bullish arguments centre on margin expansion, premiumisation, and the idea that 2026 could be a genuine inflection year. ^[52]
- Bears argue that a low‑to‑mid single‑digit grower with heavy restructuring and emerging‑market exposure shouldn’t command a premium multiple, especially after a mechanically assisted double‑digit price jump.

For current and prospective shareholders, the key questions over the next 12–18 months are likely to be:

Does Unilever actually deliver sustained volume growth above 2% and margins approaching or exceeding 20%?
Does the M&A programme create accretive, scalable franchises rather than scattered bolt‑ons?
How does the market ultimately value a Magnum‑free Unilever compared with other global staples giants?

References

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Bank of America (BAC) Stock on Fed Cut Watch: Buffett Trims, Wall Street Stays Bullish – December 10, 2025

Reviva Pharmaceuticals (RVPH) Stock Today: Price, News, Forecast & Schizophrenia NDA Setup – 10 December 2025

Vestas Wind Systems (VWS, VWDRY) Stock Outlook December 2025: Rally, Buyback and a Big 2026 Test for Offshore Wind

Unilever PLC (ULVR, UL) Stock Jumps After Magnum Demerger and Share Consolidation – December 2025 Outlook