Harvia Plc, Stock Exchange Announcement, 29 May 2024, 9am EEST
Harvia Plc will host a Capital Markets Day event today, May 29, 2024 at 10:30 a.m. ET, during which the company will present a strategic update and adjusted long-term financial targets.
Harvia is a leading player in the global sauna market, with an estimated value of approximately €3.5 billion. Since its IPO in 2018, Harvia has maintained consistently high profitability, with revenues expected to more than double to €150.5 million in 2023. To further accelerate its growth, the company has updated its strategic focus and defined its strategic role in the industry as “Shaping the global sauna market so that everyone has a reason to experience sauna.”
Update on long-term 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:
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Revenue: Average annual revenue growth rate of 10% (previously: Average annual revenue growth rate of 5% or more)
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Profitability: Adjusted operating profit margin1) Over 20% (no change)
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Leverage: Net Debt/Adjusted EBITDA2) Less than 2.5x (previously: 1.5x-2.5x net debt/adjusted EBITDA in the long run)
1) Adjusted operating profit is operating profit before items that affect comparability.
2) Excludes the future impact of changes to IFRS reporting standards.
Harvia's dividend policy remains unchanged: the company will continue to pay regularly increasing semi-annual dividends.
Updated strategic focus
Harvia's latest strategic focus areas include:
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Delivering the complete sauna experience
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Winning in strategically important markets
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Leading the major channels
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Best-in-class operations and talented people
Delivering the complete sauna experience
Harvia aims to make sauna a more well-rounded experience, offering a complete portfolio of all kinds of saunas, cold plunges, hot tubs and other sauna-related extensions, and constantly bringing new and exciting innovations to the market with great design, the best user experience and great digital solutions.
To support its growth ambitions, Harvia is focused on increasing sales of comprehensive systems and solutions. Harvia also aims to make steam saunas and infrared saunas a larger part of Harvia's business through both organic growth and M&A.
Winning in strategically important markets
Harvia continues to grow in strategically important markets, particularly outside Europe. In North America, the company aims to maintain strong growth across price points, categories and channels, including through investments in the expansion of its Lewisburg facility. In Asia Pacific and the Middle East & Africa, the company continues to aggressively develop select high potential countries, such as Japan. In the established traditional sauna market in Europe, the company is focused on further strengthening its position and capturing growth in the near term as the market recovers.
Another key goal for Harvia is to play an active consolidation role within the industry through M&A.
Leading the major channels
Harvia's markets have different sauna cultures and product mixes, and therefore different sales channels and networks. The key to accelerating Harvia's growth is to further develop Harvia's channel strategy and group-level sales and customer service capabilities to drive synergies and cross-selling opportunities. Harvia is focused on building long-term B2B customer relationships to efficiently maximize market potential. In addition, the company will strengthen the role of its direct-to-consumer channels.
Best-in-class operations and talented people
Efficient operational 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 will be achieved by scaling and automating operations, while expanding production capacity in fast-growing regions such as North America. The company is also focused on deepening integration within the Harvia group to drive productivity and growth.
“The strategy update reflects Hervia's plans to play a bold and strategic role in shaping the global sauna market and giving everyone a reason to experience sauna. We want to be a proactive market maker to grow the sauna market, create exciting innovations in sauna solutions, products, accessories and digital services, and deliver amazing sauna experiences,” said Hervia. Matthias JärnefeldtThe CEO of Harvia Plc said, “The global sauna market is attractive. As a market consolidator, we also aim to accelerate our growth by pursuing M&A and focusing on scalable business opportunities that are appropriately profitable and fit with our capabilities. With an eye towards maintaining our strong profitability and operating performance, our updated strategic focus positions us well for future growth and success.”
Capital Markets Day
Harvia's Capital Markets Day will also be webcast live today at 10:30 a.m. ET. https://harvia.videosync.fi/2024-05-29-cmdQuestions for the speakers can be submitted via the webcast platform, and a recording of the webcast and presentation materials can be found below. home page This will be held in English after the event.
Harvia PLC
board of directors
For further information, please contact:
CEO, Matias Järnefelt, phone. +358 40 5056 080
Ari Vesterinen, CFO, Tel. +358 40 5050 440
Harvia is one of the leading companies operating globally in the sauna market, measured by revenue. Harvia's brand and product portfolio are well known in the market and the company's comprehensive product portfolio aims to meet the needs of the international sauna market, both private and professional customers.
Harvia's revenues for 2023 will be €150.5 million. The Harvia Group employs around 600 professionals in Finland, Germany, the USA, Romania, China, Hong Kong, Austria, Italy, Estonia and Sweden. The company is headquartered in Muurame, Finland, next to its largest sauna and sauna part manufacturing facility.
For more information, please visit: https://harviagroup.com
