Harvia as an investment
Harvia has a strong position in the stable and growing international sauna market. The global wellness trend is one of the key business drivers.
Harvia is the global leader in the sauna market in terms of revenue and global reach. Since its establishment in 1950, Harvia has accumulated know-how on all sauna cultures and sauna types across the world. Around them, the company has built a comprehensive offering from heaters and their components to full sauna solutions. Harvia is shaping the global sauna market so that everyone has a reason to experience sauna.
Growing global market
- Market potential is significant: the global sauna market is approximately 3.5 billion euros and highly fragmented.
- The historical average growth has been 5% per year. During the next five years, the market is estimated to grow annually over 5% due to increased awareness of sauna and its health benefits.
- The sauna market has been traditionally resilient: this has been true especially for the more mature sauna markets, as the share of replacement demand in the traditional sauna market is high.
Leading global player in the sauna market
- Harvia’s share of the global sauna market is about 5% and over 20% in sauna heaters and components (management estimate).
- Harvia is the leading player in its main markets: the key markets include North America (35.4% of revenue in 2024), Continental Europe (30.1%) and Northern Europe (25.0%). In 2024, Harvia’s revenue was EUR 175.2 million.
- Harvia will continue to drive profitable growth especially outside Europe in attractive and strategically significant markets, for example, in North America and certain countries in the Asia-Pacific, such as Japan, China, and Australia.
- Harvia is also taking an active consolidator role in the industry through acquisitions, including steam and infrared saunas.
- The capacity and global reach of Harvia’s operations and scale advantages e.g. in production and sourcing create a clear competitive edge to Harvia. In addition, the organization has extensive experience in the sauna business and the B2B and consumer products market.
Strong brands, comprehensive product offering and future innovations
- Harvia’s global master brands are Harvia and EOS, complemented by independent regional and tactical brands Almost Heaven Saunas, Kirami, and ThermaSol. Harvia is one of the most often recognized international sauna brands in the market.
- Awareness and position of Harvia Group’s brands is strong in the company’s main markets.
- Harvia has a cutting-edge product offering for professionals and consumers alike – comprising all sauna types and different price ranges to cater for the full sauna experience.
- Future growth is supported by a wide array of exciting and sustainable innovations with winning design, best user experience, and new digital solutions to complement the sauna experience. The focus is on sauna solution sales to accelerate Harvia’s growth.
Efficient business model
- Harvia has a very capital efficient business model due to typically low investment needs as well as efficient and flexible production processes.
- Harvia demonstrates robust production and operational efficiency, close cooperation between sourcing, production, product development and sales, and modern production facilities.
- Key elements in efficient operations include advanced sales & operations planning, global sourcing strategy, automation of the manufacturing processes, as well as agile transportation network.
- Sustainability across the supply chain is one of the focus areas.
Long-standing customer relationships and diverse distribution channels
- The large and diverse customer base consists of sauna specialist stores, DIY chains, retailers and online stores, wholesalers, as well as sauna integrators and sauna builders.
- Products are sold globally mainly via the distributor network as well as directly to end users through Harvia’s webstores, like Almost Heaven Saunas’ almostheaven.com and Kirami’s webstore.
- Harvia expands the distributor network continuously in order to gain a more diverse customer base in the current markets as well as expanding geographically.
Strong profitability and cash flow
- The stability of the business, typically strong cash conversion, and low investment needs together with the company’s performance create a solid foundation for profitable growth and the ability to distribute dividends.
- In 2024, the adjusted operating margin reached 21.2%. Operating free cash flow was EUR 35.0 million.
