2.1 Operating revenue
Total operating revenue consists of revenue from the sale of paints and coatings, classified as revenue from
contracts with customers, as well as other revenue, which includes royalty income, miscellaneous grants and
refunds and profit from sale of fixed assets.
(NOK THOUSAND) 2019 2018
Revenue from contracts with customers 18 251 054 16 332 596
Revenue from contracts with customers - associates and joint ventures 971 236 972 747
Total revenue from contracts with customers 19 222 290 17 305 343
Other revenue 134 691 108 948
Other revenue from associates and joint ventures 294 936 245 572
Total operating revenue 19 651 917 17 659 863
(NOK THOUSAND) 2019 2018
South East Asia and Pacific 5 151 995 4 523 616
North East Asia 3 266 655 3 038 784
Middle East, India and Africa 3 181 554 2 797 092
Scandinavia 2 903 371 2 803 551
West Europe 2 327 587 2 080 456
East Europe and Central Asia 1 829 158 1 599 219
Americas 561 970 462 625
Total revenue from contracts with customers 19 222 290 17 305 343
(NOK THOUSAND) 2019 2018
Decorative Paints 7 200 812 6 559 542
Protective Coatings 5 957 615 5 101 379
Marine Coatings 4 350 121 3 969 072
Powder Coatings 1 713 742 1 675 350
Total revenue from contracts with customers 19 222 290 17 305 343
Cost of goods sold 10 440 914 9 913 967
Gross profit 8 781 376 7 391 376
Cost of goods sold comprises raw materials and packaging materials. The five largest raw materials
categories account for more than 50 per cent of total cost of goods sold. These categories are titanium
dioxide, emulsions, epoxy resins, solvents and metals. Cost of conversion is reported as part of
manufacturing costs as described in Note 2.4.
Payment terms are based on agreements and local business practices and are in general in the range of 30
to 90 days.
Back to Notes for the Group
31 %
PROTECTIVE COATINGS
2018: 25 %
2018: 40 % Percentage
23 %
MARINE COATINGS
2018: 25 %
37 %
DECORATIVE PAINTS
9 %
POWDER COATINGS
2018: 10 %
of sales
Protective Coatings’ share of total revenue has increased from 25 to 31 per cent, driven by
strong sales growth particularly in North East Asia.
Accounting policy
Revenue from contracts with customers is recognised when control of the goods or services are
transferred to the customer at an amount that reflects the consideration to which the Group
expects to be entitled in exchange for those goods or services. Revenues are presented net of
value added tax and discounts.
Variable considerations such as rebates, bonuses, discounts and payments to customers, are
accrued for when performance obligations are met and related revenue is recognised. Variable
considerations are only recognised when it is highly probable that they will not be subject to
significant reversal.
The Group does not have any contracts where the period between the transfer of the goods to
the customer and payment by the customer exceeds one year. Consequently, the Group does
not adjust any of the transaction prices for the time value.
JOTUN GROUP
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