Zound maintain strong momentum in the first quarter
Zound managed to sustain the strong momentum from 2021 during the first quarter of 2022. Net sales rose 117 percent compared to the same period last year, totaling a record-breaking 555.6 MSEK with healthy profitability in the first quarter.
Zound’s ambition is to become the number one challenger and most exciting alternative to the traditional industry players. The company has defined a bold ambition and clear strategy for its next chapter of growth, with product and digital at the core, supported by a focus on innovation, sustainability, diversity and inclusion. After a strong finish to 2021, the first quarter has set Zound up for another successful year towards this ambition – despite the unsettling macro-economic and geo-political backdrop.
“These results are a true testament to the strength of our current product portfolio and to our impressive team’s ability to navigate the new-normal and the current human, political and economical stress. The team is doing a superb job by staying focused, executing according to plan and strengthening our business for the long-term”, comments Jeremy de Maillard, CEO at Zound.
The consumer demand for Zound’s brands and products continues to be strong, and over the last few quarters Zound has been able to convert this demand into increased sales as the ability to navigate the supply chain challenges has continued to improve.
Speakers remain the biggest growth driver, but the successful product launches from last year within the true wireless segment are clearly contributing to Zound’s success in the first quarter. The healthy product mix and an increase in digital sales, both through online partners and Zound’s own eCom, are key factors behind the growth rate.
“It’s early days in 2022, we’re still feeling the impact from the pandemic and there is growing concern about the macro-economic situation. Naturally, these external factors could have a significant impact on consumer spending if they continue to worsen. However, this first quarter shows that we are well positioned in this climate. By focusing on what we can control we’ve shown that we can meet consumer demand and grow our business”, comments Martin Axhamre, CFO and Deputy CEO at Zound.
In March, Zound scooped up two more Red Dot awards for high quality design, for the Marshall Motif ANC and the Urbanears Boo. The Boo and the Boo tip true wireless headphones made from over 90% recycled plastics, were released in early April. This was followed in May by the release of two new portable speakers for Marshall, the Willen and the Emberton II, further strengthening the product portfolio.