If rock and roll were dead, it would be bad news for the Marshall Group, the Swedish company that makes its namesake guitar amp. But the company behind the amp doesn't think rock is near the end – and its latest earnings results bear that out.
In fact, The Marshall Group doesn't believe that rock is limited to one genre of music. “We think Marshall represents the attitude of rock and roll,” says the CEO Jeremy de Maillard. “We don't think it's about the type of music, we think it's about the attitude.”
As of last year, Marshall, which was founded in the UK, has been out of a country better known for Spotify and pop music: Sweden. In 2023, Stockholm-based Zound Industries, a manufacturer of headphones and wireless speakers, acquired Marshall Amplification and took the name The Marshall Group. The Marshall family retained a 24% stake in the company and the family heirs Type of cloth and Victoria Marshall each has a seat on the board. Altor Funds came on board in September as a minority investor.
De Maillard calls it “a very free takeover” that kept “pretty much everyone” from both companies apart from “a few changes at the top” as the management structures of the two companies were integrated into one group. And Zound and Marshall had history long before the acquisition: Zound had worked with Marshall for 14 years and put the Marshall brand on its headphones and speakers. “It's like we were dating and now we're married,” adds de Maillard.
The marriage seems to be off to a good start. Last year, Marshall Group's revenue rose 29 percent to 4 billion kroner ($380 million) and its adjusted operating profit improved 77 percent to 757 million kroner ($72 million), the company said on Thursday (Feb 14). Pro-forma revenue — which includes Marshall Amplification and its subsidiaries for the full year — was up 18% year-over-year. Although the company is private, it releases selected financial information to the public: “We believe that the proper rigor and correct financial reporting expected of a public company is good behavior and makes us a stronger company,” de Maillard explains.
A quarter of the Marshall Group's sales come from headphones, while 70% come from speakers and 5% from amplifiers, according to de Maillard. The Marshall brand accounts for 98% of the Marshall Group's revenue, with the remaining 2% coming from Urbanears and adidas headphones.
With the merger behind him, de Maillard's plan is to invest in the Marshall brand and launch new products to increase his share of the $100 billion music technology market that currently stands at less than 1%. Over the past six months, the Marshall Group has invested in Marshall's UK manufacturing facility, which produces hand-built valve amps and houses a recording studio. This year, The Marshall Group will begin offering its entire portfolio on a revamped Marshall website to create a stronger direct-to-consumer sales channel.
The company will continue to promote its iconic hand-built valve amps, but will intensify its strategy with its digital amps and digital tools, says de Maillard. Digital amplifiers have a variety of uses, he explains. smaller amps are good for practicing and rehearsing in small spaces, for example, and don't require the muscle or power demands of a larger valve amp. Last year, the Marshall Group released the Studio JTM Amplifier and the Middleton, a portable speaker, while it also debuted wireless noise-cancelling headphones called the Motif II ANC. More products are due in 2024, de Maillard says.
“It's one of the most well-known and loved brands in this space with over 60 years of incredible heritage,” says de Maillard. “We see our responsibility now as The Marshall Group to write the next chapter of this and build on the next 60 years.”
