Harvia operates in a resilient and growing market
- The sauna and spa market has historically seen stable development irrespective of economic cycles due to the high amount of replacement demand.
- Replacement demand globally accounts for approximately 61 per cent and in Finland, for example, for approximately 77 per cent of the sauna and spa market¹.
- Replacement demand accounts for a greater share of the sauna heater and component market: an estimated 77 per cent globally and 87 per cent in Finland.²
- In 2010–2016, the global sauna and spa market grew at an average annual rate of five per cent and the growth is expected to continue at the same level with the rising wellness trend, increased sauna awareness and higher average purchase.³
Leader in main markets
- Harvia has over 60 years of experience in the sauna and spa industry.
- Measured by revenue, Harvia is the global leader in heater and sauna component manufacturer with a market share of approximately 11 per cent.⁴
- Harvia is the largest player in the Finnish sauna and spa market and the second largest in the Swedish, German and Russian sauna and spa markets.
- In addition, Harvia occupies the position of strong challenger in the new and emerging sauna and spa markets of the United States and Asia-Pacific region.⁵
Strong brand and diverse and comprehensive product offering
- Harvia is the most often recognised international sauna brand among Finnish, Swedish, German, Russian and American consumers.⁶
- In its domestic market of Finland, Harvia clearly has the best name recognition.⁷
- Harvia and Sentiotec products have received numerous awards for innovation, design and product design.
- In the view of Harvia’s management, Harvia has one of the widest product and service offerings in the market.
Integrated and efficient business model
- Harvia’s headquarters, largest production facility and logistics centre are located in the Finnish town of Muurame. The company also has production in Romania, China, and Estonia, and a contract manufacturer in Russia, as well as a logistics centre and sales and customer service office in Austria.
- The close cooperation between sales organisation, product development and production, Harvia is able to provide products that are tailored to customer needs and easily and efficiently manufactured.
- Harvia’s management estimates that key factors that enhance Harvia’s efficiency of production and operations include lengthy experience and expertise in the industry, close cooperation between sourcing, production, product development and sales, and modern production facilities.
- The company seeks to improve the availability of competitive raw materials and to ensure the cost efficient production by centralising its production to production facilities which focus on different products and price categories.
Long-standing customer relationships and diverse dealer channels
- Harvia maintains strong, long-standing customer relationships in all its main markets. The duration of the company’s most significant customer relationship exceeds 30 years, and the longest-standing customer relationships in the company’s key export markets have been in place for more than 20 years.
- Harvia has a diverse customer base consisting of building supply companies and retail stores, sauna specialist stores, wholesalers, sauna integrators and sauna builders, and construction companies. Harvia sells products also directly to end users.
- In the view of the company’s management Harvia’s strengths is its ability to serve different kinds of customers flexibly in accordance with customer needs and local requirements.
- The company’s management estimates that Harvia has a particularly good relationship with the distribution network.
Stable and strong profitability and cash flow
- Harvia has been steadily growing its revenue both organically and with the support of acquisitions. The growth of the company’s organic revenue was 4 per cent and organic and inorganic revenue grew in total by 20 per cent, to EUR 60.1 million in 2017.
- In the same period, Harvia’s adjusted operating profit⁸ also increased from EUR 10.1 million in 2016 to EUR 10.7 million in 2017 and operating profit decrased from EUR 9.7 million in 2016 to EUR 9.3 million in 2017.
- In the view of the company’s management strong cash conversion and low investment needs create good conditions for distribution of dividends.
Skilled and experienced management team and personnel
- Harvia believes that the extensive and lengthy experience of its management together with the other skilled personnel it employs generate significant competitive advantage in the market.
- Harvia’s management has solid experience in the sauna and spa industry and consumer products markets.
- Harvia believes that competent and motivated personnel produce the best customer experience and ensure good productivity.
- The company’s management feels that Harvia is an attractive employer in Finland and in the markets where sauna recognition is high.
¹ International Management Consultant Analysis conducted in Autumn 2017.
² International Management Consultant Analysis in conducted autumn 2017.
³ International Management Consultant Analysis conducted in autumn 2017.
⁴ International Management Consultant Analysis conducted in autumn 2017.
⁵ International Management Consultant Analysis conducted in autumn 2017.
⁶ International Management Consultant Analysis in autumn 2017. Consumer study n=2500, in which respondents were persons who have a sauna and recognize at least one sauna brand
⁷ International Management Consultant Analysis conducted in autumn 2017.
⁸ Operating profit before items impacting comparability