Jotun Paint Company Sees 86% Increase in Operating Profit in Q1 2023 Thanks to Growth Strategy and Cost Control

The paint company increased its operating profit by 86 per cent.

The paint manufacturer Jotun is putting its strongest behind it tertiary tertiary A term is a third of a year. The first term is January through April, the second term is May through August, and the third term is from September through Decemberever. This is shown in a recent report from the company.

• In the first four months of 2023, Jotun sold goods worth NOK 10,389 million. This is an increase of 23 per cent compared to the first quarter of last year.
• The operating result ended at NOK 2,122 million, a whopping 86 per cent higher than the same period in 2022.
• Profit before tax was NOK 1,860 million.

The income growth is due to a combination of price increases, volume growth and positive currency effects due to a historically weak krone, the company writes in a press release.

The company attributes the jump in earnings to increased sales and gross margin, as well as good cost control.

“The result is Jotun’s highest ever, and we are very proud of that. We take market shares and have good cost control despite the fact that the activity level is high”, says Morten Fon in the report.

At the same time, the company feels that falling raw material prices have begun to affect margins positively.

Significant uncertainty

Despite the good result, Jotun sees more reefs in the sea going forward. Currency fluctuations, rising inflation and interest rates, as well as lower global economic growth create uncertainty, the company writes.

In addition, Jotun sees challenges in Scandinavia, where sales of decorative paints are still weak.

In the first term, the company invested close to NOK 500 million in new and existing facilities. Jotun sticks to its long-term growth strategy and its investment plans.