“In the first quarter of 2024, Harvia achieved once again strong profitability. Growth outside Europe in our strategically important markets was strong, whereas the overall growth was modest. Our performance was supported by very good growth in North America and in Asia-Pacific."
In the first quarter of 2024, Harvia achieved once again strong profitability. Growth outside Europe in our strategically important markets was strong, whereas the overall growth was modest. At the same time, we took steps forward with our actions to support future growth.
Our revenue was EUR 42.4 million, increasing by 2.3% from the comparison period. Our performance was supported by very good growth in North America and in Asia-Pacific, whereas in Northern Europe our sales were weakened by the challenging market conditions. The political strikes taking place in Finland during the quarter had a negative impact on Harvia’s Q1 sales, as we had to postpone some deliveries from March to April. Organic growth was 1.4%.
The market conditions in the first quarter remained largely similar to the latter part of 2023. Our key markets outside Europe, most importantly North America, continued to develop favorably in several product categories. At the Group level, we continued to increase the share of sauna rooms of our total sales, driven by our success in North America where the majority of our revenue comes from full sauna room solutions versus equipment such as heaters. I am also pleased with our sales growth in many key markets in Asia-Pacific and the Middle East.
In Central Europe, the market demand continued to stabilize but still has significant growth potential to meet its normal long-term level. Our most challenging market was Northern Europe, where continuing low consumer demand and the downturn in the construction sector were reflected in the revenue. Low demand in Northern Europe impacted our total revenue growth as well as sales performance of certain product groups, especially wood-burning heaters, for which Northern Europe is the most important market area. The revenue from accessories and heater stones developed well. This was driven by our successful actions in sales and pricing as well as several large orders.
The first quarter’s adjusted operating profit was EUR 10.1 million, increasing by 8.7% from the comparison period and corresponding to 23.8% of revenue. Harvia’s strong profitability and cash flow continue to demonstrate the excellent work done in pricing, management of net working capital and operations as a whole. They were also supported by the decreasing inflation in key materials and components in some market areas. Our operating free cash flow amounted to EUR 11.1 million and cash conversion was 95.0%.
To strengthen the foundations for future growth, we made a long-term investment to support our North American business by acquiring more land around our production facility in Lewisburg, West Virginia. We are working on improving our performance and position as the industry leader also in Europe. Our key priority is to accelerate growth while maintaining strong profitability and operative performance. Our new organizational structure, which came into effect on 1 January 2024, is fully operational and will support us in delivering our ambitions for growth, profitability and operative performance.
The sauna and spa market remains attractive and continues to offer Harvia exciting organic and inorganic growth opportunities. As industry leader, we aim to continue inspiring the market and delivering exciting innovations and more sustainable solutions. Industry consolidation is also part of our strategy, and we are ready to move when the right moment and opportunity arises. I want to express my gratitude to the entire team Harvia and our partners for the continuing good work.
