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Harvia’s Interim report 1 January – 30 September 2023


Harvia Plc, Interim report 2 November 2023 at 9.00 a.m. EET

Harvia Q3 2023: Strong profitability and cash flow while sales declined due to a challenging market in Europe

This release is a summary of Harvia Plc’s Interim Report January–September 2023. The complete report is attached to this release as a pdf file. It is also available on Harvia’s website at

Highlights of the review period

July–September 2023:

  • Revenue decreased by 9.2% to EUR 34.0 million (37.4). At comparable exchange rates, revenue decreased by 6.8% to EUR 34.9 million. Organic revenue growth was -4.9%.
  • Operating profit was EUR 6.8 million (7.3), making up 20.0% (19.5) of the revenue.
  • Adjusted operating profit reached EUR 6.9 million (7.6), making up 20.3% (20.4) of the revenue. At comparable exchange rates, the adjusted operating profit was EUR 7.2 million (20.6% of the revenue).
  • Operating free cash flow amounted to EUR 8.3 million (9.8) and cash conversion was 98.7% (105.6).

January–September 2023:

  • Revenue decreased by 17.2% to EUR 111.1 million (134.3). At comparable exchange rates, revenue decreased by 16.5% to EUR 112.1 million. Organic revenue growth was -13.6%.
  • Operating profit was EUR 23.8 million (28.1), making up 21.4% (20.9) of the revenue.
  • Adjusted operating profit reached EUR 24.1 million (28.5), making up 21.7% (21.2) of the revenue. At comparable exchange rates, the adjusted operating profit was EUR 24.6 million (22.0% of the revenue).
  • Operating free cash flow amounted to EUR 29.1 million (18.9) and cash conversion was 101.2% (56.4). The change in net working capital increased the operating free cash flow and cash conversion.
  • Net debt amounted to EUR 40.6 million (60.1) and leverage, calculated as net debt divided by 12 months’ adjusted EBITDA, was 1.1 (1.3).
  • Equity ratio was 47.7% (44.9). 
  • Earnings per share were EUR 0.86 (1.23).
  • On 28 March 2023, the Board of Directors of Harvia plc appointed Matias Järnefelt as Harvia’s CEO. Järnefelt started in his position on 1 June 2023.

Key figures

EUR million7-9/
Revenue 34.0 37.4 -9.2% 111.1 134.3 -17.2% 172.4
EBITDA 8.3 8.9 -6.8% 28.5 33.0 -13.8% 41.2
% of revenue 24.5% 23.9% 25.6% 24.6% 23.9%
Items affecting comparability * 0.1 0.3 -68.4% 0.3 0.4 -20.2% 1.8
Adjusted EBITDA ** 8.4 9.3 -9.1% 28.8 33.4 -13.9% 42.9
% of revenue 24.8% 24.8% 25.9% 24.9% 24.9%
Operating profit 6.8 7.3 -7.1% 23.8 28.1 -15.3% 34.7
% of revenue 20.0% 19.5% 21.4% 20.9% 20.1%
Adjusted operating profit ** 6.9 7.6 -9.8% 24.1 28.5 -15.3% 36.5
% of revenue 20.3% 20.4% 21.7% 21.2% 21.1%
Basic EPS (EUR) 0.24 0.34 -29.9% 0.86 1.23 -30.4% 1.45
Operating free cash flow 8.3 9.8 -14.9% 29.1 18.9 54.5% 34.0
Cash conversion 98.7% 105.6% 101.2% 56.4% 79.1%
Investments in tangible and intangible assets -0.5 -0.8 -32.5% -1.7 -2.9 -41.7% -3.6
Net debt 40.6 60.1 -32.5% 40.6 60.1 -32.5% 54.5
Leverage 1.1 1.3 1.1 1.3 1.3
Net working capital 35.9 49.1 -26.9% 35.9 49.1 -26.9% 45.3
Adjusted return on capital employed (ROCE) 42.5% 61.5% 42.5% 61.5% 54.5%
Equity ratio 47.7% 44.9% 47.7% 44.9% 47.3%
Number of employees at end of period 600 731 -17.9% 600 731 -17.9% 633

* Consists of items outside the ordinary course of business, relating to the Group’s strategic development projects, acquisitions, business divestments, restructuring and loss on sale of fixed assets, and affecting comparability.

** Adjusted by items affecting comparability.

Financial targets and outlook

The company has set long-term targets related to growth, profitability and leverage. Harvia targets an average annual revenue growth of more than 5%, an adjusted operating profit margin exceeding 20% and a net debt/adjusted EBITDA between 1.5x−2.5x in the long term. The future impacts of changes in IFRS reporting standards have been excluded in the net debt/adjusted EBITDA ratio target.

Harvia does not publish a short-term outlook.

Harvia’s dividend policy is to pay a regularly increasing dividend with a bi-annual payout.

Matias Järnefelt, CEO:

The third quarter of 2023 showed again Harvia’s ability to maintain good profitability and cash flow in challenging market conditions.

In the third quarter, our revenue reached EUR 34.0 million, showing a decline of 9.2% from the previous year. Our sales, as well as our profitability, were still affected by our complete exit from Russia and we faced increased headwind from the exchange rates. Organic growth was -4.9%. Even if the revenue still declined, the rate of change was smaller than in the previous quarters of 2023.

The significant differences in sales development between European and non-European market areas continued in the third quarter. In North America, which has become our largest reported market area, the market and Harvia’s sales continued on a very positive growth path. This was also reflected in our group-level sauna room sales, as sauna rooms form the majority of our business in North America. In Asia, our sales performance was also strong. This includes Japan, where our continuous work is visible in the improving sales performance.

In Europe, low consumer confidence, higher interest rates and difficulties in the construction sector continued to impact the sales performance. Sales decline continued in the DACH area. The challenging market environment was visible also in the weakened demand in Finland and Scandinavia. The tough market conditions were reflected in the sales of most product groups.

The third quarter’s adjusted operating profit was EUR 6.9 million, decreasing 9.8% from the comparison period and amounting to 20.3% of revenue. Our systematic and diligent efforts to manage pricing, capacity, and supply chain according to the market environment again supported Harvia’s profitability which was in line with our long-term financial target level. Operating free cash flow was also strong, reaching EUR 8.3 million. Moreover, we succeeded to decrease our inventories without compromising on our service level. In September, we strengthened our supply chain resilience through the acquisition of Italian electromechanical timer manufacturer Phoenix El-Mec. I want to express my sincere thanks to the entire team Harvia and our partners for the great work done in the third quarter.

Harvia will continue to drive profitable growth especially outside Europe in attractive and large markets, for example in North America and Asia-Pacific. Additionally, we aim to strengthen our position, increase efficiency, and seek avenues for growth also in Europe, even if the challenging market environment largely seems to prevail for the time being. All this is fully in line with Harvia’s strategic cornerstones of geographical expansion, increasing the value of average purchase, and systematic improvement of productivity.

To strengthen the execution of strategy, Harvia will adjust its organizational structure and make changes to its Group Management Team as announced on 17 October. The new structure consists of four sales regions and five group functions as well as a dedicated management team position for our high-end brand EOS. With these changes that will be effective as of 1 January 2024, we will increase customer and market orientation and drive our organic growth. Moreover, we want to strengthen our innovation and differentiation capabilities and better leverage our synergies across the Group.

While we are making some changes to our organization and ways of working, Harvia continues to drive its strategic cornerstones. Our long-term financial targets remain unchanged. We continue to seek opportunities to grow also through M&A, for which the new organization structure offers a good platform. Even if the market conditions look mixed in the short-term, the long-term potential and opportunities of the sauna and spa industry look attractive. I feel confident that Harvia has a bright future as the leader of the sauna and spa industry.

Press conference on financial results

Harvia will hold a webcast for analysts, investors and media on 2 November 2023 at 11:00 a.m. EET. The conference will be held in English. Harvia’s CEO Matias Järnefelt and CFO Ari Vesterinen will host the event. The webcast can be followed at

A recording of the webcast will be available later on the company’s website

For more information, please contact:

Matias Järnefelt, CEO, tel. +358 40 5056 080
Ari Vesterinen, CFO, tel. +358 40 5050 440

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 172.4 million in 2022. Harvia Group employs approximately 600 professionals in Finland, Germany, United States, Romania, China and Hong Kong, Austria, Italy, Estonia, and Sweden. The company is headquartered in Muurame, Finland, adjacent to its largest sauna and sauna component manufacturing facility.

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