Orkla ASA — Earnings Release 2025

Jul 14, 2025

Jotun is one of the world's leading manufacturers of decorative paints, marine, protective and powder coatings. The Group has 67 companies and 40 production facilities globally, and over 10 600 employees. Jotun products are available in more than 100 countries through own subsidiaries, joint ventures, associates, branch offices, dealers and distributors. The Jotun Group's sales in 2024 were NOK 34.2 billion. The Jotun Group is organised into four segments and five geographical regions, and has its head office in Sandefjord, Norway.

Quarterly Update – Q2 2025 Continued underlying sales and earnings growth 14 Jul 2025

• ✓ Quarterly figures impacted by negative currency translation effects
• ✓ Continued underlying sales growth in all segments
• ✓ Positive outlook despite increased global economic uncertainty

Operating revenue

Jotun recorded a slight decline in operating revenue in Q2 compared to the same quarter last year (-0.6%). This development is mainly explained by negative currency effects due to a stronger Norwegian krone. Excluding negative currency translation effects, underlying sales growth in the quarter was 3.5%.

After the second quarter, reported operating revenue year to date is up 2.8% while underlying revenue growth is 4.8%. The main driver of topline growth year to date is increased sales volume. However, increased sales of premium products, particularly in the Decorative segment, have also contributed positively. All segments and regions have delivered increased sales so far this year, led by Northeast Asia where high newbuilding activity in both China and Korea continues to drive growth in Marine sales.

Operating profit

Operating profit in Q2 showed a decline of 2.1% compared to the same period last year. However, excluding negative currency translation effects, underlying operating profit increased by 2.6% in the second quarter and is up 2.6% year to date.

The earnings growth year to date is attributable to higher gross profit, driven by increased sales and improved gross margin. This offsets an increase in operating expenses year over year due to both increased activity as well as inflation.

Outlook

Jotun maintains a positive overall outlook and expects continued underlying sales growth and solid profitability in 2025. However, currency translation effects will most likely continue to negatively influence reported sales and earnings in the upcoming quarters, as the Norwegian krone has strengthened significantly compared to the second half of 2024.

For the next three months, raw material prices are forecasted to remain stable and support gross margins in the upcoming quarter. However, competitive pressure on selling prices and increased operating costs are expected to lead to a gradual reduction in margins as the year progresses.

While tariff disputes and heightened geopolitical tensions have led to increased global economic uncertainty, Jotun has a proven business model that is highly differentiated geographically with a strong presence in growth markets. Jotun therefore maintains its long-term organic growth strategy and investment plans.

	Jan. – June	Jan. – June
Financial key figures (NOK million)	2025	2024	Change
Operating revenue	17,208	16,745	2.8%
Operating profit	3,705	3,671	0.9%

For further information

Morten Fon, President and CEO, +47 909 19 822

Øyvind Willumsen Haugå, Group Communications Director, +47 957 47 495