OUR BUSINESS
24
JOTUN DECORATIVE PAINTS
Another good year
Despite challenging conditions in some countries, the Decorative Paints segment delivered good results
and profitability in 2019.
Jotun’s record-breaking performance in the Decorative Paints
segment was supported by improved gross margins due to the
stabilisation of raw materials prices, solid growth in premium
paints and growing success in the medium range market. Due
to slow economic conditions in some countries in the Middle
East and South East Asia, Jotun experienced a decline in sales
in the project market, which lowered overall volume. However,
Jotun exceeded expectations in some markets (e.g. Egypt,
Turkey, Cambodia and Myanmar). And even in larger, more
challenging markets like Saudi Arabia, Jotun gained market
share and outperformed competitors.
Profitable dealers
Jotun’s global network of about 8 500 dealers delivered
significant profits in 2019. The company’s success was due
in part to the introduction of a number of programmes to
support dealers. For example, the company completed the
implementation of a programme providing shop owners
with detailed financial data and incentives to make better
business decisions. Jotun has also implemented a programme
to train shop sales staff, intended to create a better shopping
experience for customers. These programmes, combined
with an ongoing effort to encourage dealers to invest in shop
upgrades, have supported positive growth.
In markets where Jotun’s business relies on professionals, Jotun
trains and certifies painters. Jotun is also working more closely
with project owners, architects and consultants to ensure Jotun
products are specified. To promote Jotun’s colours and finishes,
Jotun Decorative also offers architects and designers a two-day
training course to teach them the art and science of how to
use colours and different paint finishes to enhance both the
appearance and durability of buildings and living spaces.
Project market
While Jotun Decorative will continue to focus on the premium
market, the company has also launched medium range products
in all regions, including Durosan Action and Easycoat in the
Middle East, Jotaproff Prima Air in Scandinavia, Jotaplast in
South East Asia, and Fenomastic Macun in East Europe and
Central Asia. Jotun has also launched an internal training
initiative to improves sales within the project market.
Taken together, Jotun’s focus on product innovation and the
development and implementation of internal and external
programmes to support different stakeholders, will help
the Decorative Paints segment continue to be Jotun’s most
consistently profitable business in the years ahead.
Sales in NOK million
11
10
9
8
7
6
5
4
3
2
1
0
5 853
2013
6 401
2014
8 048
2015
8 697
2016
8 927
2017
9 217
2018
10 013
2019
21+2+3+47+26+1+K 21 %
SCA
2 %
WE
3 %
EECA
47 %
MEIA
26 %
SEAP
1 %
NEA
Sales
per region