Jotun Reports 2019 Financials

Jotun achieved a new sales record of NOK 19,652 million in 2019.

An operating profit of NOK 2,320 million is also Jotun’s best result ever.
Jotun’s sales growth of 11 percent in 2019 was achieved by a strong improvement in the Marine and Protective Coatings segments and continued good growth in the Decorative Paints segment. Sales of powder coatings also increased but was affected by low activity in key markets. Adjusted for positive currency translation effects, sales growth was seven percent.

“2019 was a good year for Jotun with growth in all regions and segments, and we deliver the best results ever. Over the past few years, Jotun has been affected by low market activity in the offshore and shipbuilding markets. These conditions have turned in our favor, and have a positive impact on Jotun’s results,” said Morten Fon, president and CEO.
Operating profit is up 71 percent compared to last year, mainly due to increased sales and improved margins. Good cost control and a weaker Norwegian krone also contributed to the good result in 2019.

Jotun invested NOK 1,464 million in 2019 (2018: 1,089 million), representing about seven percent of operating revenue. Among the largest investments are the Group’s new headquarters and research and development center in Norway, and new factories in Egypt and Vietnam. Jotun expects continued sales growth in 2020, but escalating trade tensions and geopolitical pressures, as well as lower prospects for global growth, create uncertainty.

“In the shipping industry, newbuilding activity appears to decline somewhat during 2020, which may affect Jotun’s results going forward,” Fon said. “However, as Jotun operates in multiple segments and has a global presence, we are well equipped to tackle challenges in individual segments and markets.”