Shares of consumer goods major Unilever PLC ( UL ) are trading lower in premarket on Thursday.

The company announced that it is making solid progress toward separating its Ice Cream division, with plans to finish the process by the close of 2025.

Significant steps have been taken in critical areas, such as forming legal entities, creating an independent operating structure, and finalizing the required financial separation documents.

Last year, Unilever ( UL ) said it planned to spin off its Ice Cream division and concentrate on a portfolio of brands that are well-positioned in desirable markets with complementary business models.

The Ice Cream unit includes notable global ice cream brands, such as Wall’s, Magnum, and Ben & Jerry’s.

Jean-Francois van Boxmeer has been named Chair Designate for the newly independent Ice Cream business. With extensive experience in the consumer goods industry, van Boxmeer is currently the Chair of Vodafone Group Plc ( VOD ) and a non-executive director at Heineken Holding N.V.

The Ice Cream unit will be separated through a demerger and listed on the Amsterdam, London, and New York stock exchanges, matching the current markets where Unilever ( UL ) shares are traded.

The Ice Cream business will be incorporated in the Netherlands, and its headquarters will be maintained in Amsterdam.

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The decision comes after a thorough evaluation by Unilever’s Board of Directors, aimed at maximizing returns for shareholders while positioning the Ice Cream business for future success.

For the fiscal year 2024, Unilever ( UL ) reported a 4.2% increase in underlying sales, driven by a 2.9% growth in volume.

 Turnover rose by 1.9% to 60.8 billion euros ($63.16 billion), with a negative impact of -0.7% from currency fluctuations and -1.5% from net divestments.

Power Brands, which account for over 75% of turnover, led the growth with a 5.3% underlying sales growth and a 3.8% increase in volume.

Brand and marketing investment rose by 120 basis points to 15.5%, marking the highest level in more than a decade.

The underlying operating margin grew by 170 basis points to 18.4%, while the gross margin expanded by 280 basis points.

Underlying earnings per share rose by 14.7%, though diluted EPS fell 10.6% due to losses from disposals and increased spending on productivity initiatives.

The quarterly dividend was increased by 6.1% compared to fourth-quarter FY23, and a new 1.5 billion euros share buyback program was announced.

Outlook: Unilever ( UL ) expects a slower start to 2025 with subdued growth in the short term, but both market conditions and growth are expected to improve as the year progresses, driven by price hikes reflecting higher commodity costs in 2025.

The company forecasts underlying sales growth for 2025 of 3% – 5%.

Price Action: UL shares are trading lower by 6.26% at $55.44 in premarket at the las check Thursday.

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