Exceeding expectations
Despite challenges in many markets related to the coronavirus pandemic, Jotun’s resilient business
model yielded another year of good overall sales growth and record-breaking profitability.
Jotun’s excellent performance in 2020 is the result of a
robust business model and the skill and dedication of the
company’s workforce. First, Jotun’s interaction with multiple
industries and consumers in different countries allowed
the company to offset lower results in some markets with
significant improvement in others. Second, timely investments
in enhanced IT capabilities and use of digital collaboration
tools allowed the company to continue to function, even
in countries facing strict lockdowns. Finally, by swiftly
implementing business continuity measures and empowering
local personnel to manage the impacts of the pandemic
locally, Jotun was able to continue providing products and
services to customers.
STRONG FINANCIAL RESULT
A surge in demand in select markets, such as Norway and
Turkey, combined with a gradual pick up of sales in other
markets as coronavirus containment measures were eased,
led to record high sales in 2020. In addition, sales growth
was supported by positive currency effects due to a weak
Norwegian krone. Jotun’s positive results in all segments were
also supported by favourable raw material prices combined
with the successful implementation of cost control measures.
Jotun’s liquidity remained solid, allowing the company to be in
a strong financial position throughout a challenging year.
Internally, the company continued to move forward with
planned improvements. In addition to opening a new
Research and Development (R&D) centre in Sandefjord,
Norway and breaking ground on a new R&D centre in Dubai
in the UAE, Jotun worked to complete the construction of
new factories in Egypt and Vietnam and completed upgrades
to its powder coatings factory in the Czech Republic.
Jotun also decided on increased focus on environmental
sustainability. Finally, Jotun announced structural changes to
its Performance Coatings business at the end of the year to
enable the company to target new business opportunities and
be more responsive to markets and customers.
CHALLENGES AHEAD
The lingering effects of the pandemic on the world economy
are likely to have a negative effect on Jotun’s business in
2021. A steep decline in newbuilding orders over the next
few years will create challenges for the Marine Coatings
segment while delayed or cancelled projects in the oil and
gas industry will impact sales in the Protective Coatings
segment. Jotun also anticipates that raw material prices will
rise in 2021, which may impact profits. However, Jotun is
confident that the experience and skill of its workforce will
make it possible to successfully navigate these changing
market conditions and further strengthen the company’s
market position in the future.
Morten Fon
President & CEO
Full time employees Production volume
Litres/kilos (1 000 tonnes)
2020
2010
SCA
WE
EECA
MEIA
SEAP
NEA
AM
Corporate
0 500 1000 1500 2000 2500 3000
SCA
WE
EECA
MEIA
SEAP
NEA
AM
0 50 100 150 200 250 300 350 400
10 I Jotun Group Report 2020 Our business / Statement from the President & CEO