Harvia updates its dividend policy to support the company’s growth strategy

Stock Exchange Release | 10 February 2022

Harvia Plc, Stock Exchange Release, February 10, 2022 at 09.03 EET

Harvia updates its dividend policy to support the company’s growth strategy

The Board of Directors of Harvia Plc has decided to update the dividend policy of Harvia. Under the previous dividend policy, Harvia targeted:

  • Regularly increasing dividends
  • Bi-annual payout
  • Dividend payout of at least 60% of Group net income in total

The cornerstones of Harvia’s strategy are increasing the value of the average purchase, geographical expansion, and continuous improvement of productivity and innovation. In line with this strategy, Harvia has gained market share and improved its position in the global sauna and spa market, both through strong organic growth as well as M&A. In 2021, Harvia also made growth investments worth EUR 11.8 million in total to expand its production capacity and improve productivity.

Under the new dividend policy, Harvia targets:

  • Regularly increasing dividends
  • Bi-annual payout

“We see attractive growth opportunities for Harvia in the future. To support our future growth, we will continue to look for interesting M&A opportunities and to invest in our operations. Year 2021 was a year of strong growth for Harvia – and we want to continue on this path. The revised dividend policy increases Harvia’s financial flexibility and enables us to seize attractive growth opportunities. To support this strategic objective, we intend to retain more cash within the company for growth investments,” comments Tapio Pajuharju, Harvia’s CEO.

For the financial year 2021, the Board of Directors proposes to the Annual General meeting in April that the company distribute a dividend of EUR 0.60 per share. The dividend is proposed to be paid in two installments, EUR 0.30 per share in April 2022 and EUR 0.30 per share in October 2022. The dividend distributed by Harvia Plc for the financial period 2021 would amount to EUR 11,216,542 in total (paid in 2021: EUR 0.51 per share, EUR 9,570,600 in total).

Further information:

Ari Vesterinen, CFO, Tel. +358 40 505 0440

Harvia in brief:

Harvia is one of the leading companies operating in the sauna and spa market globally, as measured by revenue. Harvia’s brands and product portfolio are well known in the market, and the company’s comprehensive product portfolio strives to meet the needs of the international sauna and spa market of both private and professional customers.

Harvia’s revenue totaled EUR 179.1 million in 2021. Harvia Group employs more than 800 professionals in Finland, China and Hong Kong, Romania, Austria, United States, Germany, Estonia and Russia. The company is headquartered in Muurame, Finland, adjacent to its largest sauna and sauna component manufacturing facility.

Read more: https://harviagroup.com