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OUR BUSINESS
A number of external factors impacted Jotun’s results in 2017, but overall sales volume increased,
a clear sign the company remains on the right track.
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JOTUN GROUP
FULL TIME EMPLOYEES PRODUCTION FACILITIES
2017
2007
A DURABLE BUSINESS MODEL
In 2017, the rising cost of raw materials, including epoxies,
titanium dioxide, copper and zinc, had a negative impact on
profits. And because Jotun is active in more than 100 different
countries, the company is sensitive to currency effects and
changes in local economic conditions. For example, investment
activity in Saudi Arabia has declined, impacting Jotun’s growth
in this important market. At the same time, weak demand
for the construction of new vessels and offshore installations
has impacted Jotun’s sales of marine and protective coatings,
notably in China and South Korea.
VOLUME GROWTH
Despite challenges, Jotun recorded overall positive sales volume
growth in 2017, with strong support from the Decorative
Paints segment. For a company active in four segments in many
countries, Jotun has both the ability to shift resources where
they are needed and the flexibility to adjust to local market
conditions without impacting other parts of the network. By
narrowing the gap between growth in sales and manageable
costs, the company remains in a strong financial position to
support its growth strategy.
In 2017, Jotun invested in new laboratories (in Turkey, the Czech
Republic, and the UK), the ongoing construction of factories,
and celebrated the completion of new factories in Malaysia,
Myanmar, The Philippines and Russia. In Norway, construction
is underway for the company’s new head office and R&D
centre. Jotun also continues to allocate resources towards IT
tools and systems to modernise the company and to build the
competence of employees.
STAY THE COURSE
While Jotun is working to improve profitability going forward,
the company’s results in 2017 have not led to any significant
changes to Group strategy. Jotun continues to identify and
invest in promising markets, new technologies, production
capacity and employees. Jotun has faced many challenges in
its 90-year history, but by leveraging the company’s strengths
and taking a long-term perspective, Jotun is in a strong
position to continue the growth trend it has enjoyed for more
than a decade.