Strong Start to the Year for Jotun

Jotun reported that during the first four months of 2023, its sales income increased to NOK 10,389 million ($932 million), while the operating result reached NOK 2,122 million ($190 million) for the first four months of the year. However, significant uncertainty persists in several key markets.

The strong sales growth continues for the Norwegian paint manufacturer Jotun, with an increase of 23% compared to the same period last year. The growth was driven by a combination of price increases, volume growth and positive currency effects due to a historically weak Norwegian krone.

“We have had a very good tertiary, with positive sales development in all segments and regions. However, the demand for decorative paints in the Scandinavian market is sluggish, and the market for powder coatings remains challenging,” said Morten Fon, Jotun’s president and CEO.

Profitability strengthened and the operating result increased by 86% compared to last year. The improvement was mainly driven by increased sales and higher gross margin, in addition to good cost control.

“The operating result is all-time high, which is a great achievement. We are taking market shares and are controlling costs well, despite a high activity level. In addition, easing raw material prices have started to impact our margins positively,” said Fon.

Raw material prices eased somewhat in the first tertiary. However, prices are still historically high. While Jotun’s outlook is positive, significant uncertainties persist, including increased currency volatility, rising inflation and interest rates and lower global economic growth.

“There is geopolitical tension and uncertainty in the world. Jotun is however well-positioned to handle this and achieve further profitable growth,” said Fon.