Harvia

Harvia Plc. is a Finnish heater, sauna, spa and a sauna interiors manufacturer. The company’s product offering covers all three sauna types: traditional sauna, steam sauna and infrared sauna. The company is headquartered in Muurame, Central Finland. Harvia’s products are distributed globally through a network of dealers. Harvia shares (“HARVIA”) are listed on the Nasdaq Helsinki Ltd and are registered in the Finnish Book-Entry Register maintained by Euroclear Finland Ltd.[1]

Harvia factory in Muurame

History

Tapani Harvia made the first Harvia woodburning stove for his own use in 1950. The first woodburning stove for sale was completed in the mid-1950s. By the end of the decade, Harvia's main product had become the sauna stove. The brand of the heaters was Har-Ve. About 500 heaters were sold annually. In 1958 the company was renamed Takomo T Harvia Ky and in 1961 it was renamed Harvia Ky. Harvia manufactured about a thousand heaters a year and employed five people. Risto Harvia (born 1948) joined the company in 1966 and Kullervo Harvia at the end of the decade.

Harvia moved from Jyväskylä to Muurame in 1972 to its own 500 square meter industrial hall. Pertti Harvia and Sari Harvia-Jyllinmaa joined the company in the mid-1970s. Risto Harvia started as CEO in 1977. By the end of the decade, the production had grown to about 6,000 heaters per year with 12 employees.

Harvia Ky changed from being a limited liability company to Harvia Oy in 1980. Tapani Harvia retired and served as Chairman of the Board. In addition to wood-burning stoves, Harvia began manufacturing electric stoves in the early 1980s. In the end of the decade, the company employed 32 people and manufactured approximately 20,000 wood-fired and 5,000 electric heaters per year.

Strategy and targets
  • Increasing the value of the average purchase
  • Geographical expansion
  • Improving the efficiency of production[2]

Basic share information

Harvia shares (“HARVIA”) are listed on the Nasdaq Helsinki Ltd and are registered in the Finnish Book-Entry Register maintained by Euroclear Finland Ltd.[3]

Harvia’s registered share capital was EUR 80,000 and the company had issued 18,549,879 fully paid shares (22.3.2018)[4]. Harvia has one share series, and each share entitles the holder to one vote at the company’s General Meeting of shareholders[5]. There are no voting restrictions attached to the shares[6]. The shares have no nominal value. Company’s shares belong to a book-entry system.  At the moment the company does not hold any of its own shares. [7]

Governance

Harvia’s governance and management commits to the Finnish Limited Liability Companies Act and Securities Markets Act, as well as the company’s Articles of Association, the charters of the Board of Directors and Audit Committee of Harvia and the rules and regulations of the Helsinki Stock Exchange, rules and guidelines of the Financial Supervisory Authority as well as the Corporate Governance Code for Finnish Listed Companies set by the Securities Market Association [8]

The members of the Board of Directors in 2018
  • Olli Liitola (Chairperson),
  • Anders Björkell,
  • Pertti Harvia
  • Ia Adlercreutz
  • Ari Hiltunen [9]

Management team in 2018
  • Tapio Pajuharju, Managing Director
  • Ari Vesterinen Chief Financial Officer
  • David Ahonen, Export Director
  • Timo Harvia, Director of research and development
  • Sami Linna, Marketing Director
  • Anssi Pelkonen, Sales Director (Finland)
  • Tomas Hjälmeby, Sales Director (Sweden, Norway, Denmark and Iceland)
  • Markus Wörmanseder, Sales Director (Central Europe)
  • Mika Suoja, Production Director[10]
Tapio Pajuharju, Managing Director, Harvia Plc.





    Harvia Plc’s Interim Report January–March 2019

    Highlights of the review period
    • Revenue grew by 16.9% to EUR 19.3 million (16.5). At comparable exchange rates, revenue grew by 16.6% to EUR 19.2 million. Organic revenue growth was 7.5%.
    • Adjusted operating profit was EUR 4.0 million (3.2), making up 20.6% (19.5) of the revenue. At comparable exchange rates, the adjusted operating profit grew by 20.4% to EUR 3.9 million (20.1% of the revenue).
    • Operating free cash flow amounted to EUR 1.7 million (2.0).
    • Net debt amounted to EUR 31.6 million (29.8) and leverage was 2.3 (2.4).
    • Equity ratio increased to 55.7% (53.4). [11]

    Financial targets and outlook

    Harvia does not publish its short-term outlook. However, the company has set long-term targets related to growth, profitability and leverage. The company targets an average annual revenue growth of more than 5%, adjusted operating profit margin of 20% and a net debt/adjusted EBITDA between 1.5x−2.5x. The future impacts of changes in IFRS reporting standards have been excluded in the net debt/adjusted EBITDA ratio target.

    Harvia targets a regularly increasing dividend with a bi-annual dividend payout of at least 60 percent of net income, in total.[12]

    CEO's review
    PROFITABLE GROWTH IN THE FIRST QUARTER

    During the first quarter of 2019, the demand for sauna and spa products remained steady, and thanks to the systematic implementation of our strategy, we were able to improve our competitiveness. In the sauna and spa market, the first quarter of the year is important and now we faced comparison figures from Harvia’s all-time record quarter in 2018. Revenue for the first quarter increased significantly (16.9%) year on year and amounted to EUR 19.3 million. Organic revenue growth was at a good level (7.5%). Part of our growth is attributable to the acquisition of the business operations of Almost Heaven Saunas (AHS) in the United States at the end of 2018.

    Our revenue increased especially in the sauna heater market, with strong growth in electric heaters and particularly in wood-burning heaters. Our new and innovative products had a favorable impact on sales development. Our electric sauna heaters Glow, Cilindro Plus, and The Wall as well as the SENTIO by Harvia products have been well received in the market. In the wood-burning heater product group, one of our largest products, Harvia Pro 20, received its long-awaited update, and we began delivering the renewed version to customers in March. We achieved significant growth also in the sauna room product group, largely thanks to the AHS acquisition.

    Demand was good and Harvia’s operations were successful in most of our key markets. Nevertheless, the decrease in demand in the German market that we faced at year end 2018 did not recover in the first quarter of the year. This was reflected in the deliveries of electric heaters and particularly control units.

    The profitability of our business remained stable and strong. Harvia’s profitability improved significantly year on year, and the Group’s adjusted operating profit grew to EUR 4.0 million (3.2). Our increased sales volumes, attractive product range and continuous improvement of productivity had a positive impact on our profitability. Our adjusted operating profit margin was 20.6%, showing a clear improvement from the comparison period (19.5%). We continued our investments in improving productivity and we completed investments in new advanced machinery during the first quarter.

    Taking over the operations of the US-based Almost Heaven Saunas, acquired at the end of 2018, has proceeded as planned. Among other things, we have renewed AHS’s product range and pricing as well as improved the terms and conditions of purchases. Our revenue in North America increased significantly thanks to the acquisition of Almost Heaven Saunas. Additionally, growth among other customers in North America was exceptionally strong.

    Our first quarter of the year was strong, and both Harvia’s team and our key customers have done a very good job. We continue to implement our strategy with determination and focus on increasing the value of the average purchase, geographical expansion as well as the continuing improvement of productivity. In addition to organic growth, Harvia is actively looking into possibilities of growth through business acquisitions.[13]



    gollark: Firecubez is continuously on drugs.
    gollark: https://tenor.com/view/woah-gif-21858651
    gollark: It knows.
    gollark: *Valgrind immediately explodes*
    gollark: Possibly.

    References
    1. "Basic share information". Harvia. Retrieved 2019-07-26.
    2. "Strategy and targets". Harvia. Retrieved 2019-07-26.
    3. "Basic share information". Harvia. Retrieved 2019-07-26.
    4. "Basic share information". Harvia. Retrieved 2019-07-26.
    5. "Basic share information". Harvia. Retrieved 2019-07-26.
    6. "Basic share information". Harvia. Retrieved 2019-07-26.
    7. "Basic share information". Harvia. Retrieved 2019-07-26.
    8. "Governance". Harvia. Retrieved 2019-07-26.
    9. "Management and Board". Harvia. Retrieved 2019-07-26.
    10. "Management and Board". Harvia. Retrieved 2019-07-26.
    11. Oyj, Harvia (2019-05-07). "Harvia's interim report 1 January – 31 March 2019". GlobeNewswire News Room. Retrieved 2019-07-26.
    12. Oyj, Harvia (2019-05-07). "Harvia's interim report 1 January – 31 March 2019". GlobeNewswire News Room. Retrieved 2019-07-26.
    13. "CEO's review". Harvia. Retrieved 2019-07-26.
    This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.