Our strategy

We are on a path to further strengthen our position
in the global sauna and spa market

Harvia is a global leader in the sauna and spa market and the number one manufacturer of sauna heaters and components. 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 2019, our revenue grew by 19.6%, adjusted operating profit was 18.7% and the net debt/ adjusted EBITDA ratio was 1.7. We seek to continue our predicted growth plan. Our long-term financial targets are:

  • GROWTH: annual revenue growth of more than 5% on average
  • PROFITABILITY: adjusted operating profit margin of 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

We aim to grow the share of advanced sauna products and sauna solutions sold in all different sauna types. For example, instead of a sauna heater, we’ll offer a heater with a control unit and safety rail, or we will implement a full sauna solution including lighting and a sound system. With offering saunas that reach beyond the traditional ‘heater in a dimly lighted room’ type of setup, we seek to inspire our customers and encourage them to rethink their sauna experience.

In 2019, we launched the Cilindro Plus SPOT sauna heater with a wireless control unit, the Solide Compact design sauna, and the Shelly mobile application for controlling the heating of sauna remotely. The Harvia PRO wood heaters also received a facelift.

2) GEOGRAPHICAL EXPANSION

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

A concrete example of our geographical expansion is the acquisition of the business operations of the US-based Almost Heaven Saunas LLC, carried out in the end of 2018. The acquisition will yield us significant opportunities to expand our product range and services in North America.

3) IMPROVEMENTS IN PRODUCTIVITY

We constantly seek to improve our productivity. To be able to work smarter we:

  • Streamline product portfolio
  • Optimise sourcing
  • Improve productivity in manufacturing
  • Further improve our logistics.
Managers Transactions Release | 25 March 2020
Managers Transactions Release | 25 March 2020
NASDAQ Helsinki
12:22 on 02 Apr 2020
9.06 EUR
-0.44%