Our strategy

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 2020, our revenue grew by 47.3%, adjusted operating profit was 22.47% and the net debt/ adjusted EBITDA ratio was 1.1. 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

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 2020, the price of the average purchase progressed favorably. A great example of this development is the strong growth of the complete sauna business in both Europe and the United States. In addition, the sauna heater and component business in the United States enjoyed a favorable development, and the performance of Almost Heaven Saunas’ business and especially its own webstore and direct sales performed excellently.

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, 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.

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, Asia and Russia.

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.