Strategy

Harvia is shaping the global sauna market so that everyone has a reason to experience sauna.

Harvia is the leading player in the global sauna market, which is estimated at approximately 3.5 billion euros in value. Since its initial public offering in 2018, Harvia has over doubled its size in revenue while delivering strong profitability. The company updated its strategy in 2024, defining its strategic role in the industry as “shaping the global sauna market so that everyone has a reason to experience sauna”.

Harvia’s strategic focus areas

1. Delivering the full sauna experience

Harvia aims to make sauna a broader experience, offering a complete portfolio of all sauna types, cold plunges, hot tubs, and other sauna related products and solutions. Harvia aims to constantly bring new, exciting innovations to the market with a winning design, the best user experience and great digital solutions.

To support its growth ambition, Harvia focuses on increasing the sales of comprehensive systems and solutions. Harvia also aims to make steam and infrared saunas a more sizeable part of Harvia’s business, both organically and through M&A.

2. Winning in strategically important markets

Harvia continues to drive growth especially in strategically important markets outside Europe. In North America, the company aims to maintain strong growth across price points, categories, and channels, supported by investments in expanding the operations at the Lewisburg factory, among others. In the APAC & MEA region, Harvia continues to develop the market actively in selected high-potential countries such as Japan. In the established, traditional sauna markets in Europe, the company focuses on strengthening its position further and capturing growth also in the short term as the markets recover.

Another key objective for Harvia is to take an active consolidator role in the industry through M&A.

3. Leading in key channels

Harvia’s key markets have different sauna cultures and product mixes and therefore also different sales channels and networks. An important part of accelerating Harvia’s growth is further developing Harvia’s channel strategy and the Group-level sales and customer service capabilities to drive synergies and cross-sell opportunities. To capture the full market potential efficiently, Harvia puts significant focus on developing its long-term B2B customer relationships. In addition, the company will strengthen the role of its direct-to-consumer channel.

4. Best-in-class operations & great people

Efficient 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 is sought by scaling up and automating operations while expanding capacity in the strongly growing regions, such as North America. The company also focuses on deepening integration within Harvia Group to drive productivity and growth.

Harvia Q1 2025: Strong profitability – growth in all regions

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Harvia has set long-term targets related to growth, profitability and leverage. The company does not publish a short-term outlook. Harvia’s long-term financial targets are:

Revenue: Average annual revenue growth of 10%
Profitability: Adjusted operating profit margin¹⁾ exceeding 20%
Leverage: Net debt/adjusted EBITDA²⁾ below 2.5x

1) Adjusted operating profit is operating profit before items affecting comparability.
2) Excluding the future impacts of changes in IFRS reporting standards.

The profitability of Harvia’s business has historically been good. 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.

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

Information about Harvia’s dividend

Megatrends shaping the sauna market

Harvia has identified six key drivers that are expected to drive market demand and offer growth opportunities for Harvia also in the coming years:

Wellness and health: People are willing to invest in better and longer lives.

Experience economy: Consumers globally are willing to spend more on experiences that enrich their lives.

Growing awareness: Awareness of sauna and its health benefits is growing, driven by high visibility of sauna in social media.

Technology: Innovations merging sauna and technology provide new possibilities for Harvia.

Sustainability: The demand for commercializing innovative, responsible and safe sauna solutions increases.

Market consolidation: The fragmented sauna market is consolidating as large players also from adjacent industries are entering the business.

Harvia's vision and mission

We are healing with heat! Our purpose is to contribute to a long and good life through healing with heat.

Vision

Our vision is to become the insightful leader in sustainable wellbeing experiences in all sauna categories, cultures and health benefits – both for consumers and professionals all over the world.