Quarterly Update – Q1 2023 Strong start to the year

The solid sales growth continued in the first quarter of 2023, with reported sales growth of 24 per cent compared to the same period in 2022. Excluding positive currency translation effects due to a weaker Norwegian krone, the underlying sales growth was 18%.

The strong underlying growth was driven by decent volume growth as well as the continued effects of the price increases that have been implemented to offset the raw material inflation experienced during the pandemic. Sales growth was particularly strong in the Decorative, Marine and Protective segments.

Operating profit grew by 81% in the first quarter as a result of improved gross margin, volume growth and good cost control. The gradual recovery in gross margins is primarily explained by the effects of the price increases, but lower raw material prices are also starting to have a positive impact on margins. Raw material prices eased somewhat in the first quarter. However, prices are still historically high