Zound continues its profitable growth journey in historic first quarter
Zound Industries continued its strong revenue and profit growth journey into the first quarter of 2023, with net sales increasing 54% to SEK 857.4 million. Operating profit increased to SEK 173.8 million (70.6), amounting to an operating margin of 20.3%, up from 12.7% in the same period last year. Zound also announced the acquisition of Marshall Amplification to create the Marshall Group, which will enable the company to further expand into the multi-billion-dollar global audio-tech industry.
“The first quarter was an historic chapter for Zound. In addition to delivering our third best quarter to date, the creation of the Marshall Group will take our successful relationship with Marshall to the next level and enable us to provide musicians and music lovers worldwide with even better products and experiences,” says Jeremy de Maillard, CEO.
Zound Industries has acquired all Marshall Amplification brands and subsidiaries, including Natal Drums, Marshall Records, and Marshall Live Agency. Under the terms of the deal, the Marshall family became the largest shareholders of the new Marshall Group.
The quarter also saw the launch of the Marshall Middleton, the brand’s biggest portable speaker boasting True Stereophonic, a unique form of multi-directional stereo sound from Marshall to deliver the ultimate immersive experience wherever you roam. This speaker’s sturdy build comprises 55% post-consumer recycled plastic from used electronics, water bottles and automotive light covers, and is 100% PVC-free.
In terms of product categories, speakers continued to be a key growth driver with net sales increasing 56% to SEK 655.5 million (420.6). Headphones also performed strongly, with net sales up 51% to SEK 201.9 million (134.1) for the quarter.
The strong growth in the first quarter is a result of the continued strong demand for the company’s innovative and unique product portfolio combined with strategic marketplace management to spread sales more evenly across the quarters. This strategic choice lessens the reliance on the big sales events in the later parts of the year, resulting in less discount activities and further reinforcing the premium positioning of the brands.
“We continued our strong sales momentum and profitability expansion from 2022 into the first quarter. While this first quarter of 2023 has been exceptionally strong, we anticipate revenue growth and operating margin to be more in line with our long-term ambition as we work through the integration to unlock the potential of the Marshall Group going forward.” says Martin Axhamre, CFO and Deputy CEO.
In March, the Marshall team joined forces to attend the SXSW conference and festival in Austin, Texas. We showed up as one unified brand, further cementing Marshall’s roots in music and commitment to support the local community to promote the Austin music scene.
On June 15, Zound Industries International AB intends to change its name to Marshall Group AB.