Jøtul Group – Interim Financial Report for the half year ended 30 June 2024

The Jøtul Group (representing Jøtul AS together with its subsidiaries; the Group) is one of the three largest suppliers of fireplaces in Europe and a major player in North America. The company, with a history dating back to 1853 through its heritage as one of Norway’s oldest companies, distributes freestanding stoves, inserts, frames and accessories for fireplaces. The Group’s main brands are Jøtul, Scan and Ravelli. Jøtul fireplaces are made of cast iron and have a timeless and robust appearance, with Norwegian origins. Scan fireplaces are made of plated steel and are characterised by modern Danish design, while Ravelli pellet stoves are characterised by Italian design and technology. The head office is located in Norway. Production takes place through own production facilities in Norway, Poland, France and the USA, as well as a range of purchased products. The products are sold through one of the industry’s most extensive global networks, consisting of own sales companies and distributors. The products reach the end consumer through specialty stores and, in Norway, also through building materials chains.

In the first half of 2024, the Group’s revenue decreased by 41.6% to MNOK 498.1, compared to MNOK 853.6 in the same period last year. The downturn is mainly due to lower demand, driven by lower energy costs (both electricity and natural gas), higher interest rates, lower home improvement spending and a slowdown in the construction sector (particularly related to new homes and holiday homes). For wood stove manufacturers, the impact was further exacerbated by a significant accumulation of excess inventory in the industry and at dealers, driven by a large build-up and strong order intake during peak demand in late 2022 and the first few months of 2023. This was observed as a major driver of weak sales in late 2023 and remained an issue throughout most of H1 2024 in key markets such as North America, Northern Europe, Italy and Germany.