MICC

• Strategy and Value Creation

  • The company is executing its 3-pillar strategy: build demand through strong brand innovation, deliver operational execution rigor, and foster an ownership culture with clear accountability and aligned incentives to drive long-term growth and returns for shareholders.
  • The transformation program remains on track to be completed by the end of 2027.

• Brand and Innovation Performance

  • All four core global brands delivered growth: Magnum and The Heartbrand (including Solero) delivered mid-single-digit growth; Ben & Jerry's delivered mid-single-digit growth overall, accelerating to 9.2% in Q2; Cornetto delivered low single-digit growth following high single-digit growth in 2025.
  • New product launches performed strongly: Magnum La Pistache was the top ice cream innovation in Europe; Ben & Jerry's new stick and sandwich formats drove strong consumer adoption and growth; 6 of the top 10 ice cream innovations in Europe and 6 of the top 10 in the US were company products.
  • The company is expanding its premium brands to multi-format offerings to address more consumption occasions, and is adding products across all price points.
  • Digital commerce maintains double-digit growth, and the company views DECOM (digital commerce) as a large long-term structural growth opportunity.

• Operational and Cost Highlights

  • The company's productivity program delivered 90 million euros in savings in H1 2026 (70 million from supply chain, 20 million from overhead), and remains on track to deliver 500 million euros in medium-term savings. Savings are partially reinvested in growth initiatives.
  • Recent acquisitions in India and Portugal completed in March/April 2026 have been successfully integrated into results. Six strategic technology partners have been appointed for the new standalone technology stack, and all planned TSA transitions for H1 2026 were completed on schedule, with remaining transitions to wrap up by end of 2027.
  • All regions gained market share, with the US (the company's largest market) delivering 1.1 billion euros in H1 revenue. Turnaround efforts are underway for underperforming markets including Italy (share has stabilized) and Brazil (structural changes are being implemented ahead of the next peak season).
  • Net debt to adjusted EBITDA was 2.5x at the end of H1 2026, aligned with the company's capital allocation policy.

• Management reaffirmed full-year 2026 guidance, maintaining prior targets rather than upgrading despite H1 outperformance
• Expected full-year organic sales growth remains 3-5%
• Adjusted EBITDA margin improvement on a comparable perimeter basis (vs 2025) is expected to be 40-60 basis points; reported adjusted EBITDA margin improvement is expected to be 0-20 basis points, primarily due to the impact of the India acquisition
• Adjusted items are expected to be in line with prior estimates, and the adjusted effective tax rate is expected to be ~27% (excluding prior year tax settlements), at the upper end of the midterm plan
• Net finance cost is estimated at ~160 million euros, down from the prior estimate of 180 million euros
• An accounting change for customer returns in Turkey will shift a portion of revenue between Q3 and Q4 2026 (reducing Q3, increasing Q4 by equal amounts), with no impact on full-year or half-year results

Total company revenue for H1 2026 was 4.7 billion euros, with 4.7% organic sales growth (2.5% volume growth, 2.2% price growth).

1. Europe and ANZ: 4.1% organic sales growth. Adjusted EBIT margin improved 100 basis points year-over-year, despite a 50 basis point headwind from lower India royalties. Adjusted EBITDA margin was down 90 basis points year-over-year due to TSA-related depreciation reclassification. Growth was driven by innovation, improved execution, and favorable weather, with strong performance in France (double-digit growth) and the UK (mid-single-digit growth).
2. Americas: 3.2% organic sales growth, with reported revenue 1.1% lower year-over-year due to 4.1% adverse forex translation. Adjusted EBIT margin improved 140 basis points year-over-year, and adjusted EBITDA margin improved 50 basis points. The US delivered 3.6% overall growth with market share gains, while Brazil remained in decline (sequentially flattish slightly down) as the company executes a turnaround plan.
3. AMIA: 7.6% organic sales growth, with reported revenue up 9% year-over-year (including 6.8% favorable acquisition impact from the India purchase and 5.2% adverse forex impact). Adjusted EBIT margin declined 190 basis points year-over-year, and adjusted EBITDA margin declined 270 basis points, impacted by TCA regulatory measures in Turkey, high material cost inflation, and acquisition-related costs from the India integration. Strong double-digit growth was delivered by Turkey, Pakistan, and newly acquired India, while China faced a drag from unfavorable end-of-period weather.

• Uncertainty in the global macroeconomic and commodity price environment remains
• Regulatory interim measures from the Turkish Competition Authority require 30% of the company's freezers in small retail outlets to be allocated to competitors or left empty, which created margin headwinds in AMIA in H1 2026
• The Brazil turnaround is progressing slower than initially expected
• Unfavorable weather impacted sales in China and Cornetto growth in H2 2026, and weather volatility remains a risk for the summer selling season
• High commodity cost inflation created 200 basis points of headwinds in H1 2026, with lingering impacts in the supply chain
• The newly acquired India business is currently loss-making as the company invests in scaling operations

Q: Warren Ackerman (Barclays) asked about the tough H2 2026 comparative base, July exit rate after the June heat wave, current market share trends, and the impact of Turkish TCA regulations on Turkey's high margins. / A: Management stated the company has gained share in 9 of 10 quarters since separation, with share gains in the US and overall Europe even with weak performance in some individual markets, including share gains in China. For Turkey, the company is fully complying with TCA requirements, has gained share in hard discounters and e-commerce to offset any impact, and expects the business to deliver full-year volume and high value growth with healthy margins remaining intact.

Q: Céline Pannuti (JP Morgan) asked why management did not upgrade guidance after H1 2026 outperformed the top end of the prior range and had a stronger-than-expected summer start, and why the full-year reported margin guidance remained conservative after a strong H1 margin performance. / A: Management noted that half the year remains remaining, so the company is holding the prior 3-5% organic growth guidance range. On margin, the company is 30 basis points behind the full-year target at the end of H1 due to acquisition and TSA impacts, so it needs to deliver margin improvement in H2 to meet full-year targets, justifying the maintained guidance range.

Q: Bingqing Tse (Redburn) asked what drove double-digit growth in newly acquired India in Q2, how sustainable this growth is, when India will become a meaningful group contributor, and what progress has been made rebuilding US distribution in underpenetrated value and club channels. / A: Management stated India's growth is driven by a full overhaul of the business: new leadership and organizational structure, adjusted pricing to better align with local snacking price points, a shift from vegetable fat to higher-quality dairy, expanded focus on premium core brands, and a rapid expansion of the company-owned cabinet network and sales distribution system. Growth is expected to be sustained as the company scales, with massive long-term potential to grow from ~250,000 cabinets to 1 million in the long term. For the US, rebuilding of value and club channel distribution is progressing: the company has returned to historic levels in some accounts, is still working to expand its portfolio in other key club accounts, and the segment remains a multi-year growth opportunity.

Q: Jeremy Kincaid (VLK) asked why organic price growth was negative in Europe, and how much innovation contributes to growth and whether the current high innovation rate is sustained going forward. / A: Management noted that pricing in Europe is dynamically adjusted to support volume-led growth, so small negative price growth reflects proactive pricing to maintain volume momentum, which is a deliberate strategic choice. Management stated innovation drives roughly 40% of the company's overall organic growth, from core product renovations, format expansion, and new benefit offerings. The company has built a sustainable innovation engine to maintain this pace of innovation on an ongoing basis as a core growth driver.