Our strategy

Harvia has continued to gain market share in recent years and has taken the leading position in the global sauna and spa market measured in revenue. We have a strong growth mindset, and the three strategic priorities in further strengthening our position as a leading global sauna and spa brand are
1) increasing the value of the average purchase,
2) expanding geographically, and
3) improving productivity.

FINANCIAL TARGETS

In 2022, our revenue decreased by 3.7%, adjusted operating profit was 21.1% and the net debt/ adjusted EBITDA ratio was 1.3.  Our long-term financial targets are:

• GROWTH: annual revenue growth of more than 5% on average
• PROFITABILITY: adjusted operating profit margin exceeding 20%
• LEVERAGE: net debt/adjusted EBITDA between 1,5x–2,5x*

* Does not take into account the effect of future changes in IFRS standards

HOW WE PLAN TO MEET THOSE TARGETS

We are on a path to further strengthen our position in the global sauna and spa market. The key strategic priorities to achieve our objective are:

1. increasing the value of the average purchase
2. geographical expansion
3. improving our productivity

1) INCREASING THE VALUE OF THE AVERAGE PURCHASE

Our target is to increase the value of the average purchase by offering sauna heaters with more advanced properties and more extensive sauna solutions. In addition, the company aims to sell accessories, which include control units, sauna equipment and products that enhance the safe and comfortable use of the sauna.

In 2022, Harvia continued successfully increasing the value of the average purchase. A great example of this development is the very strong growth of sauna sales in the United States, especially in the direct sales and online store channels. In addition, the sauna heater and component business enjoyed a favorable development in the United States alongside many other newer sauna markets.

The acquisition of the majority of EOS Group improved our position in the professional channel. With the acquisition, our portfolio was complemented with premium professional products in the higher price range, which contributed to the increase in the average purchase value.

2) GEOGRAPHICAL EXPANSION

We aim to grow our market share in all our main markets in Finland, Scandinavia, Central Europe and North America.

We focus on constantly developing our retail network and that way improving the scope, availability and visibility of the product range tailored for the market.

The acquisition of EOS Group further strengthened our position in Central Europe. In the future, the acquisition will create new opportunities also in the Nordic countries, North America and Asia.

3) IMPROVEMENTS IN PRODUCTIVITY

We aim to continuously improve our operational efficiency by, among other things, optimizing processes and the geographical structure of production, as well as by enhancing the efficiency of purchasing and logistics.