Resilience
and adaptability
Jotun recorded positive growth in sales value, driven by good results in most segments and
regions, despite the high cost of critical raw materials that impacted profitability.
While Jotun was not able to reproduce its record-setting
profitability last year, 2021 reaffirmed the company’s resilient
business model. Escalating prices for raw materials, rising
transportation costs and business interruptions in many
markets related to the coronavirus pandemic tested Jotun
like never before. But thanks to the organisation’s ability to
adapt quickly to changing circumstances, and implement
price increases and manage costs, Jotun not only managed to
retain solid liquidity, but strengthened its market position in
many regions.
REGIONAL DIVERSITY
Core elements of Jotun’s strategy have proven to be highly
effective during a time of rapid change. Although a steep
decline in newbuilding orders impacted results in the Marine
Coatings segment, the company experienced growth in
the Decorative Paints and Protective and Powder Coatings
segments. Likewise, the company’s regional diversity served
as a hedge against rolling lockdowns that slowed business
in some important markets. For example, slow growth in
Scandinavia, North East Asia and South East Asia was partially
offset by positive results in the Middle East, East Europe
and the Americas. By empowering regions, local managers
have the flexibility to adjust to changing market conditions
to ensure business continuity. This strategic “differentiated
approach” has served Jotun well.
10 I Jotun Group Report 2021
Jotun also continued to invest in the future. Ongoing
or planned construction projects, which include new
production facilities, warehouses, R&D centres and
factory expansions are underway in Norway, the UK,
Indonesia, Vietnam, Egypt, Algeria, Qatar, Bangladesh,
India and Pakistan. At the same time, Jotun’s investments in
competence development and recruitment, with a renewed
focus on diversity and inclusion, are ongoing. Finally, Jotun
restructured its existing sustainability activities to align with
new reporting requirements.
CAUTIOUS OPTIMISM
Jotun will continue to rely on its strategy and the strength of
the company’s organisation in 2022. The effect of high raw
material prices and transportation costs are not expected
to ease before the second half of the year, and the threat of
coronavirus variants may continue to impact business continuity
in some markets. However, Jotun is confident that the
company’s investments, combined with a highly experienced
and skilled workforce, will help the company thrive when the
pandemic subsides. In fact, Jotun not only managed to retain
existing personnel, but continues to grow as an organisation,
leaving the company with an intact and motivated workforce to
seize opportunities when markets improve.
Morten Fon
President & CEO
Our business / Statement from the President & CEO