Marico’s Stock Rises Following Recent Acquisition, Preparing for Q3 Earnings Reports

Shares of FMCG giant Marico Ltd. are up on Tuesday, January 27, following the announcement that the company has finalized agreements for a strategic investment in Zea Maize, the owner of the premium snacking brand 4700BC.

As part of the transaction, Marico will acquire 93.27% of Zea Maize’s paid-up share capital from PVR INOX for a total consideration of ₹227 crore, making Zea Maize a subsidiary upon completion.

The acquisition is expected to finalize within 30 days, according to a regulatory filing. Marico will also have the option to purchase the remaining stake in Zea Maize three years after the agreement is executed.
4700BC is a prominent premium snacking brand known for its gourmet popcorn, makhana, crunchy corn, and nachos.

The brand has experienced significant revenue growth over the last three years, with revenue increasing to ₹98.66 crore in FY25 from ₹75.29 crore in FY24 and ₹48.47 crore in FY23.

This acquisition signifies Marico’s entry into the premium indulgence and gourmet snacking market, likely expanding the company’s total addressable market.

Key factors to monitor moving forward include the scalability of the 4700BC brand within Marico’s distribution network and the potential for additional acquisitions in the gourmet snacking sector.

Saugata Gupta, MD and CEO of Marico, stated that this investment aligns with the company’s goal to engage in fast-growing food categories through distinct and future-focused brands.

He emphasized the vast potential of 4700BC as a premium snacking brand with strong consumer appeal and proven execution skills.

Marico is also set to release its earnings report for the December quarter later today.

In its Q3 business update, the company noted a year-on-year revenue growth in the high twenties, keeping it on track to achieve its full-year growth targets. Input cost trends have become more favorable, with copra prices decreasing by around 30% from recent highs and expected to decrease further with the onset of the flush season. Vegetable oil prices have remained high, while crude oil derivatives are mostly stable.

In India, Marico achieved underlying volume growth in the high single digits, indicating a slight sequential improvement. Parachute, the company’s flagship coconut oil brand, has shown resilience despite elevated input costs and previous pricing adjustments.

Shares of Marico closed Friday’s trading session down 1.41% at ₹740.90.