The Magnum Ice Cream Company N.V.

Good morning and welcome to the Magnum Ice Cream Company webcast for the full year 2025 results. My name is Heidi and I will be your operator for today's call. Before we begin, please note that today's presentation is being recorded. At this time, all participants are in a listen-only mode. After the presentation, we will move into the Q&A session. Instructions for the Q&A session will be provided at that time, and we will take your questions one by one. With that, I am pleased to turn the call over to Michel Neger. Michel, please go ahead.

Good morning, everyone. Welcome to the Magnum Ice Cream Company's first full year 2025 results webcast. My name is Michel Neger, Head of Investor Relations, And I'm here today with our CEO, Peter Terkelve, and our CFO, Abhijit Attegharia. The press release and investor presentation were published on our investor relations website this morning. The replay and full transcripts of this webcast will be made available after the call as well. Before we start, I want to draw your attention to our cautionary statement on the screen. You will also find this statement in the presentation published on the website. In a moment, Peter will talk you through the key elements of our performance in 2025 and how we are executing on our strategy. Abhijit will then look at the financial performance in further detail by talking you through revenue, profitability, cash flow, and looking at the financial outlook for 2026 before Peter closes. After that, we will open the floor for questions. So Peter, over to you.

Good morning, everyone, and thank you for joining us today. I'm pleased to welcome you to the Magnum Ice Cream Company's first full-year results call as a separate, publicly listed company. This is an important moment for our business as we present our performance as a focused global ice cream company and outline what we're going to do to position TMICC for sustainable, profitable, and competitive growth. 2025 was a foundational year for MEC. It was a year of operational and strategic progress and delivery against a challenging macroeconomic climate and serious headwinds from commodity inflation at an unprecedented level of 380 basic points. At the same time, we completed the demerger and set up the business with the right structure, governance, and most importantly, talent, and culture to drive accountability and profitable growth. In headline terms, we delivered a solid performance in 2025 with full-year organic sales growth of 4.2%. And I was particularly pleased that volume grew by 1.5%. Every region contributed to growth with market share gains across most markets. This was supported by improved availability, innovation, strategic pricing, and operational rigor. To build on the volume growth in 2024, we made the decision to price competitively across brands and geographies to enable volume growth despite this intense cost inflation. In the year, we also right-priced our portfolio in several geographies and corrected trade margins in China and Southeast Asia. These actions were geared towards getting our business fundamentals in the right shape, and it worked. Forex movements and TSA-related cash costs affected adjusted EBITDA margin. But excluding these impacts, adjusted EBIT at constant exchange rates was up by 48 million. As disciplined execution of our productivity program, supported by select pricing actions partially offset the impact of commodity price inflation. The strength of the Magnum brand was evident as we maintained volumes despite price increases to mitigate cocoa inflation. Before I talk about our strategy and performance in more detail, a word on quarter four. The final quarter of the year is our smallest quarter. representing around 15% of full year sales. Many of our typical faster growing away from home markets, such as Turkey and China, have a limited contribution in this period. In these markets, we use this time of the year to take back cabinets and trade stock to get the cabinet fleet ready for next year's season. As a result, in Q4, the Americas drive over 50% of Q4's revenue, compared to around a third for the full year. This year, disruption in food stamps in the US and a late start to the Brazilian season impacted the fourth quarter. While we continued to outpace the category, both in the Americas and globally, it was more challenging, which led to a decline of less than 1% OSG in the quarter. As this is our first results call since the separation from Unilever, I want to take a step back and remind you of the market opportunity and strategy we outlined at the Capital Markets Day in September. The ice cream market is resilient. In many ways, we are the lipstick of foods. I just returned from Brazil, and it was interesting to hear direct from consumers that even economically challenged families make space for ice cream in their family budget. In 2025, the market continued to grow by 3% to 4%, in line with the last 10 years. This growth was again driven by penetration and distribution built in emerging markets. In more developed markets, by the trend from larger to smaller and more premium handheld portions, and increasingly better for you, high-protein, local, real fruit products. Our thinking on GLP-1 has evolved even since the Capital Markets Day in September, based on the premium treat substitution effect. When people eat less overall, the question is, which treat is the winner? And the data is telling an increasingly clear story. When on GLP-1, people still treat themselves, and ice cream is a very competitive treat. The category premiumizes as people choose smaller portions, better quality, and when on offer, more real fruit and protein. We believe that GLP-1s will accelerate the premiumization of the category, which is good for Magnum. Further, as consumers using GLP-1s are eliminating low-quality munching categories first, categories like premium chocolate, premium ice cream, and protein snacks could gain share in the overall snacking market. Increasingly, these trends are guiding our innovation and portfolio strategy, and you will see that come through today. Our vision for TMICC in this market is simple. We want to make the most loved ice cream in the world, to grow the market and build a highly competitive snacking business for our shareholders and customers, because life tastes better with ice cream. And we're going to do that by delivering our strategy to grow the ice cream market as category leader. Our plan is built on three pillars, growth, productivity, and reinvestment. As its course, that means combining the strengths of our brands with a business system designed specifically for ice cream, enabling faster decision-making, sharper execution, and disciplined capital allocation, to maintain an investment-grade balance sheet. Our growth strategy is built around growing consumption occasions with market-making innovation, pricing competitively across all snacking and refreshment price points, rolling out premium brands internationally and take them multi-format, driving digitally-led demand creation and massive out-of-home visibility. increasing our availability across channels, especially e-commerce and in emerging markets away from home. Importantly, this growth is enabled by a 500 million productivity program that resets our supply chain and structural cost base. This gives us the fuel to reinvest behind our brands, capability, and leadership through disruptive innovation, increased demand creation, and best-in-class digitized execution. The strengths of our portfolio, channel management, and global footprint give me confidence in our strategy and our ability to win in the market. We own some of the most iconic brands, Magnum, Ben & Jerry, Conetto, and then, of course, what we call the heart brand, which encompasses brand names like Good Humor, Ola, Algeda Walls, and sub-brands like Solero, Calippo, Cartador, and Twister. The strength of our brands has translated into leading market share positions across most channels in our core markets, and critically, in the fast-growing digital channel, which is growing double-digit. So, we have a well-balanced portfolio, world-class brands that grow ahead of market, clear growth opportunities through our presence in fast-growing emerging markets and in established markets like the US, our biggest, China, the UK, Germany, and next to that, a very strong channel footprint. Our performance in 2025 reflects the success of our strategy and the choices we made. A core pillar of that strategy is winning through skill innovation and premiumization, not as one of launchers, but as a repeatable growth engine. In 2025, that engine delivered across our leading brands, combining premium formats and stronger execution to drive growth and share gains across the vast majority of our key markets, including the USA, our biggest. Magnum outperformed with the launch of Utopia and Bombols. Ben & Jerry gained share in the U.S. and Europe across the at-home and away-of-home channels, with its unique socially-led digital model sustaining strong relevance. Cornetto grew ahead across its top 10 markets, supported by the Cornetto Max and a new stick format in China. And the heart brand grew through socially-first excavations with our multi-layer stick architecture now scaling from Asia into Europe to secure a first mover advantage. We are also extending this engine into the formats shaping the category, Better For You and Portion Control. Yasso grew over 30% in 2025 as we expanded into the new formats in the US, while Briars CarbSmart continued to grow. We also moved Magnum and Ben & Jerry into bites, and we are extending this to other brands, including Solero and Conetto. Finally, we are getting faster from idea to launch. Magnum Dubai chocolate in Turkey was delivered in six months from concept to shelf. But as all of us know, it's not just about innovation. It's about execution in market. Most markets are seeing meaningful channel shifts. with growth moving to digital, convenience, and value-led formats. Our strategy is to win where the mix is shifting, and availability expansion across channels progressed significantly in 2025. We were an early mover into digital commerce, and it remained our fastest growing channel, delivering double-digit growth. In China, it is already more than 20% of our sales. Click and Collect is going from strengths to strengths in the United States and many European markets. In At Home, we grew mid-single digit by stepping up customer execution with our new, fully dedicated TMCC Salesforce, which enabled us to gain better shelf positions and promo effectiveness, whilst executing improved customer growth plans across markets. Away From Home achieved mid-single digit growth, This was supported by the second year of cabinet fleet expansion in relevant markets, progress on route to market digitalization, and a stronger frontline organization. Alongside delivering growth, we continue to successfully execute our productivity program across supply chain transformation, overhead reduction, and tech-enabled productivity. delivering 180 million further savings this year. This is on top of the 70 million savings delivered in the second half of 2024, bringing cumulative savings to 250 million. Key actions included reducing SKU complexity and focusing resources on our most productive innovations. We freed up capacity for our global brands in local markets and invested in our factories to remove capacity constraints and hasten innovation speed to market. We are also making significant progress in reducing under the skin complexity. Strengthening demand forecasting and seasonal planning using advanced weather forecasting models, which are being integrated into our planning systems. Driving end-to-end cost discipline across procurement, logistics, and overhead. This was evident across the regions, but particularly in the Americas. The US end-to-end supply chain reset enabled growth and realized efficiencies and cost savings, factory modernization, distribution optimization, and improved procurement. Continuing the process of exiting RTSA as planned with an expectation to be complete by the end of 2027. These actions are not one-off. They are structural improvements that will continue to benefit TMICC in the years ahead and fuel our reinvestment strategy to power the flywheel of long-term growth and profit improvement. We are reinvesting for growth and productivity. Cabinets are a key part of this as a critical enabler of growth and sometimes overlooked or misunderstood mode in our business. Our cabinets are like soft drinks chillers. They provide unique advantages that help us to maintain and grow market leadership. In 2025, we increased cabinet capex by around 10% to grow our market leading fleet of 3 million cabinets. And we began deploying new technology to better forecast out of stock and to spot trends. The impact of our growth strategy combined with improved execution was proved out in each of our regions. In the US, Our biggest market, we gained share for the second consecutive year, 24 basic points, and we are solid number one. We delivered organic sales growth of 1.7% and volume growth of 1.8%, which is high in the U.S. snacking industry. 2025 was a year of significant operational progress in the U.S. We finalized our organization with a dedicated ice cream sales force. Disciplined execution of our productivity program helped us to become cost-competitive and re-enter the club and value channel with good progress. But we have more to do. Joint customer plans with key omni-channel partners like Walmart and Target delivered strong results across store and digital channels. Ben & Jerry and Yasso grew double digits in e-commerce on-year. Our performance on Amazon went from strength to strength. In Europe, Australia, and New Zealand, strong performance in the UK, France, and Spain led to an OSG of 3.3% and market share gains for the second year in a row with 37 basic points in 2025. Growth was driven by strong innovation and brand performance, but critically was enabled by operational rigor. improved physical availability, new value channel listings, and strengthened partnership with key retail customers. Our performance in Italy is still a work in progress, but the performance in the UK was truly outstanding. We not only drove strong sales, helped by favorable weather, but also took share. Overall, it may not have felt like that in London, but the weather index in Europe and ANZ was close to the long-term average. EMEA delivered double-digit growth of 10.9%, with 4.5% volume growth and share gains. Turkey and Pakistan delivered double-digit growth. In Turkey, premium innovation and better distribution in the Horeca channel drove volume growth. In Pakistan, growth was driven by an expansion of cabinets, seasonal packs, and snacking formats. As mentioned before, in China and Indonesia, We delivered high single-digit growth and share gains by improved channel and customer execution, including right-setting trade terms, and a strong innovation program. It was a first that a Chinese concept, the multi-layer stick, has become a global innovation. Looking ahead, while the external environment remains uncertain, the ice cream market has good momentum. and we have a strategy that continues to deliver. We also have an exciting pipeline of innovation landing in 2026. As I said during the Capital Markets Day, the ice cream category had gotten a little bit stuck in nostalgia and creamy indulgence, and we are clear on the opportunity of bringing modern snacking and refreshment benefits to the ice cream category. There are four distinct pillars to our innovation strategy, which I will talk you through. And on the slides, you will see some of the fantastic new products we are bringing to market in the year ahead. Firstly is core superiority. We carefully benchmark every single core product versus the competition and continuously improve where appropriate. Over the last 18 months, we have relaunched 80% of our core products and have invested in better ingredients and formulations. Secondly, we perfect the portfolio by sharpening the right mix of format, flavor, pack, and price to match occasions and channels. Especially in the US and Europe, the teams have made great progress in optimizing our portfolio. Third is the global rollout of our premium brands and a deliberate strategy to take their core brand promise into new formats to unlock incremental penetration and usage. The last pillar is category expanding innovation, taking ice cream into new benefit areas such as better for you. For example, we are launching an hydration ice cream, scaling protein propositions, introducing new high food content ices, and investing in nascent sugar replacement technology. In regards to outlook, the ice cream market is expected to grow between the 3 to 4%. We expect organic sales growth for 2026 to be between 3 to 5%, with underlying margin improvement. Now, I will hand over to Abhijit, our Chief Financial Officer. who will take you through the financial performance in more detail. Thank you.