LONDON (Reuters) -Unilever expects the Magnum-led ice cream unit it is spinning off to see average annual organic sales growth of 3-5% in the medium-term from 2026, the company said ahead of a capital markets day on Tuesday.

Unilever expects the Magnum Ice Cream Company, which it is spinning off in mid-November, to command just over a fifth of the around $88 billion global ice cream market and compete with rivals such as Nestle-backed Froneri.

The ice cream spin-off, which will see Unilever hold on to a sub-20% stake, presents a crucial test for CEO Fernando Fernandez as he looks to shake up the giant consumer goods firm, streamline management and boost margins.