Harvia updates its strategy and long-term financial targets
Harvia Plc, Stock Exchange Release, 29 May 2024 at 9:00 a.m.
EEST
Harvia Plc is organizing its Capital Markets Day event today 29
May 2024 at 10:30 a.m. EEST. In the event, the company will present
a strategy update and adjusted long-term financial targets.
Harvia is the leading player in the global sauna market, which
is estimated at approximately EUR 3.5 billion in value. Since its
initial public offering in 2018, Harvia has over doubled its size
in revenue to EUR 150.5 million in 2023, while delivering
consistently strong profitability. To further accelerate growth,
the company is updating its strategic focus areas and defining its
strategic role in the industry as “shaping the global sauna market
so that everyone has a reason to experience sauna”.
Updated long-term financial targets
Harvia’s long-term financial targets have been adjusted to
reflect the company’s growth ambitions. The new long-term financial
targets are:
- Revenue: Average annual revenue growth of 10% (before:
average annual revenue growth of more than 5%)
- Profitability: Adjusted operating profit margin1)
exceeding 20% (unchanged)
- Leverage: Net debt/adjusted EBITDA2) below 2.5x (before:
net debt/adjusted EBITDA 1.5x−2.5x in the long term)
1) Adjusted operating profit is operating profit before items
affecting comparability. 2) Excluding the future impacts of changes
in IFRS reporting standards.
Harvia’s dividend policy stays unchanged: the company will
continue to pay a regularly increasing dividend with a bi-annual
payout.
Updated strategic focus areas
Harvia’s updated strategic focus areas are:
- Delivering the full sauna experience
- Winning in strategically important markets
- Leading in key channels
- Best-in-class operations & great people
Delivering the full sauna experience
Harvia aims to make sauna a broader experience, offering a
complete portfolio of all sauna types, cold plunges, hot tubs, and
other sauna related extensions, and constantly bringing new,
exciting innovations to the market with a winning design, the best
user experience and great digital solutions.
To support its growth ambition, Harvia focuses on increasing the
sales of comprehensive systems and solutions. Harvia also aims to
make steam and infrared saunas a more sizeable part of Harvia’s
business, both organically and through M&A.
Winning in strategically important markets
Harvia continues to drive growth especially in strategically
important markets outside Europe. In North America, the company
aims to maintain strong growth across price points, categories, and
channels, supported by investments in expanding the operations at
the Lewisburg factory, among others. In the APAC & MEA region,
Harvia continues to develop the market actively in selected
high-potential countries such as Japan. In the established,
traditional sauna markets in Europe, the company focuses on further
strengthening its position and capturing growth also in the short
term as the markets recover.
Another key objective for Harvia is to take an active
consolidator role in the industry through M&A.
Leading in key channels
Harvia’s markets have different sauna cultures and product mixes
and therefore also different sales channels and networks. An
important part of accelerating Harvia’s growth is further
developing Harvia’s channel strategy and the Group-level sales and
customer service capabilities to drive synergies and cross-sell
opportunities. To capture the full market potential efficiently,
Harvia puts significant focus on developing its long-term B2B
customer relationships. In addition, the company will strengthen
the role of its direct-to-consumer channel.
Best-in-class operations & great people
Efficient operations provide a significant competitive advantage
for Harvia, and continuously improving productivity to ensure
profitability remains a key focus area of Harvia’s strategy. This
is sought by scaling up and automating operations while expanding
capacity in the strongly growing regions, such as North America.
The company also focuses on deepening integration within
Harvia Group to drive productivity and growth.
“The strategy update reflects Harvia’s plans to take a bold,
strategic role in shaping the global sauna market and giving
everyone a reason to experience sauna. We want to be an active
market maker to grow the sauna market and create exciting
innovations in sauna solutions, products, accessories, and digital
services to deliver great sauna experiences,” says Matias
Järnefelt, CEO of Harvia Plc. “The global sauna market is
attractive. We also aim to accelerate our growth by driving
M&As as a market consolidator, focusing on scalable business
opportunities with appropriate profit potential and fit to our
competences. While not losing sight of maintaining our strong
profitability and operative performance, with our updated strategic
focus areas, we are well positioned for future growth and
success.”
Capital Markets Day
Harvia’s Capital Markets Day, starting today at 10:30 a.m. EEST,
can also be followed as a live webcast at
https://harvia.videosync.fi/2024-05-29-cmd. Questions for the
speakers can be submitted via the webcast platform. A recording of
the webcast and the presentation materials will be available at
www.harviagroup.com after the event. The event will be held in
English.
HARVIA PLC Board of Directors
For more information, please contact:
Matias Järnefelt, CEO, tel. +358 40 5056 080 Ari Vesterinen,
CFO, tel. +358 40 5050 440
Harvia is one of the leading companies operating in the sauna
market globally, as measured by revenue. Harvia’s brands and
product portfolio are well known in the market, and the company’s
comprehensive product portfolio strives to meet the needs of the
international sauna market of both private and professional
customers.
Harvia’s revenue totaled EUR 150.5 million in 2023. Harvia Group
employs approximately 600 professionals in Finland, Germany, United
States, Romania, China and Hong Kong, Austria, Italy, Estonia, and
Sweden. The company is headquartered in Muurame, Finland, adjacent
to its largest sauna and sauna component manufacturing
facility.
Read more: https://harviagroup.com
Harvia (TG:G1U)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Harvia (TG:G1U)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024
