Our strategy

HARVIA IS SHAPING THE GLOBAL SAUNA MARKET SO THAT EVERYONE HAS A REASON TO EXPERIENCE SAUNA

Harvia is the leading player in the global sauna market, which is estimated at approximately 3.5 billion euros in value. Since its initial public offering in 2018, Harvia has over doubled its size in revenue 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”.

Harvia’s updated strategic focus areas are:

  1. Delivering the full sauna experience

  2. Winning in strategically important markets

  3. Leading in key channels

  4. Best-in-class operations & great people

 

1. 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.

2. 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 strengthening its position further 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.

3. 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.

4. 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.

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.

NASDAQ Helsinki
18:29 on 06 Nov 2024
44.20 EUR
-2.21%