How GLP-1 Drugs Like Ozempic May Be Hitting Ice Cream: Magnum’s Profit Drops 48%

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(Edited)

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Credits: finance.yahoo.it

If we think about summer, besides the sea another thing that comes to mind is ice cream, after all it is not a typical winter thing, and among them the brand Magnum is one of the most famous... I always remember how many years ago on television there was so much advertising that encouraged people to buy it and eating a Magnum almost made you feel "cool". But things change and now I read in the newspaper that Magnum Ice Cream, the historic company behind those very ice creams, has just published its first financial statement after the separation from Unilever: revenues substantially stable at 7.9 billion euros (+4.2% compared to 2024), but net profit down 48%, stopping at 307 million euros, and operating profit down 21% to 599 million. As a result the shares have fall by 12%.

Now one could simply say “ok people change brands, summer didn’t last long, etc”, but instead behind these declining numbers there is a very deep phenomenon and, at least for me, unexpected that comes from the USA: the ice cream sector is facing a big problem with the arrival of anti-obesity GLP-1 drugs, such as Ozempic, which are changing eating habits, reducing the demand for sweet snacks and traditional ice cream... Because you need to know that these drugs increase satiety and reduce the desire for sweets and junk food causing a decrease in demand. There is obviously no certain proof that the decline depends on the drugs, but rather strange as a coincidence their massive use with the drop in sales.

For this iconic brand the future represents a challenge: it has never had to face a change like this, will it manage to maintain its identity and adapt to the new health and cultural trends? A first response from Magnum is to try to respond with low-calorie, high-protein ice creams and controlled portions, but the outcome remains uncertain. We will see how it goes, but I didn’t think that drugs could end up influencing even the ice cream market.

References: https://www.ft.com/content/f1ecd89f-c9f9-4ab0-b375-60163c3e7d1b

finance money magnum icecream pob bee bbh
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16 comments
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I for one will miss that crack/craik and I don't think I'll be taking any diet pills either. Our society is so fixated on medicating the problem away, don't you think?

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Yeah, it's better to fix your diet than take pills, I agree

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I love ice cream, and I assure you that in my country, it wasn't drugs that influenced the price increase, but something called inflation.

I'd like a Magnum right now, it's really hot. ...I think it will recover when summer comes, but it'll be a very hot summer.

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The translator changed my words; I meant to say that in my country we stopped eating Magnu ice cream because of the high prices, not because of the pharmaceutical company.

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here too inflation hit, price same but way smaller size of ice cream

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I've never eaten a Magnus ice cream; I only know it from old pictures, but my family has tried it and they say it was delicious. Perhaps when things improve in my country, Magnus's company will return to Venezuela and they'll be able to increase their sales. It's very hot in my country and we love chocolate

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It's sure delicious even though not really healthy, it also has ton of flavors

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I love sweets, especially chocolate. And Magnus was very famous in my country for its brand and its flavor.

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What a sad piece of news. I hope they recover and their stock rises as needed. I have fond memories of those ice creams; they were so sexy and delicious.

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Pharmaceuticals could also boost ice cream sales. One artisanal ice cream shop invented a flavor with paracetamol, so people could recover from a hangover by eating ice cream.

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Sounds like I need to do my part to fix this! I wonder how the toilet paper companies are doing lately. Word on the street those weight loss drugs have some rather explosive side effects!

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