Harvia’s Half-year financial review 1 January – 30 June 2024
Harvia Plc, Half-year financial review 8 August 2024 at 9:00
a.m. EEST
Harvia Q2 2024: Significant sales growth and strong
profitability
This release is a summary of Harvia Plc’s Half-year financial
review January–June 2024. The complete report is attached to this
release as a pdf file. It is also available on Harvia’s website at
https://harviagroup.com/.
Highlights of the review period
April–June 2024:
- Revenue increased by 20.7% to EUR 43.2 million (35.8). At
comparable exchange rates, revenue increased by 20.3% to EUR 43.0
million. Organic revenue growth was 20.1%.
- Operating profit was EUR 8.9 million (7.8), making up 20.7%
(21.9%) of the revenue.
- Adjusted operating profit was EUR 9.4 million (8.0), making up
21.8% (22.3%) of the revenue. At comparable exchange rates, the
adjusted operating profit was EUR 9.4 million (21.8% of the
revenue).
- Operating free cash flow amounted to EUR 5.5 million (9.1) and
cash conversion was 50.0% (96.1%). The change in net working
capital decreased the operating free cash flow and cash
conversion.
- Harvia announced its updated strategy and long-term financial
targets on 29 May 2024, when the company held its first Capital
Markets Day.
January–June 2024:
- Revenue increased by 10.9% to EUR 85.5 million (77.2). At
comparable exchange rates, revenue increased by 10.8% to EUR 85.5
million. Organic revenue growth was 10.4%.
- Operating profit was EUR 18.8 million (17.0), making up 22.0%
(22.1%) of the revenue.
- Adjusted operating profit was EUR 19.5 million (17.3), making
up 22.8% (22.4%) of the revenue. At comparable exchange rates, the
adjusted operating profit was EUR 19.5 million (22.8% of the
revenue).
- Operating free cash flow amounted to EUR 16.6 million (20.8)
and cash conversion was 73.2% (102.2%). The change in net working
capital decreased the operating free cash flow and cash
conversion.
- Net debt amounted to EUR 32.6 million (45.8) and leverage,
calculated as net debt divided by last 12 months’ adjusted EBITDA,
was 0.8 (1.2).
- Equity ratio was 49.8% (46.3%).
- Earnings per share were EUR 0.71 (0.62).
Key figures
|
EUR million |
4–6/
2024 |
4–6/
2023 |
Change |
1–6/
2024 |
1–6/
2023 |
Change |
1–12/
2023 |
| Revenue |
43.2 |
35.8 |
20.7% |
85.5 |
77.2 |
10.9% |
150.5 |
| EBITDA |
10.5 |
9.4 |
12.3% |
22.0 |
20.1 |
9.2% |
39.3 |
| % of
revenue |
24.4% |
26.2% |
|
25.7% |
26.1% |
|
26.1% |
| Items affecting
comparability * |
0.5 |
0.1 |
263.2% |
0.7 |
0.2 |
237.2% |
0.6 |
| Adjusted EBITDA
** |
11.0 |
9.5 |
15.9% |
22.7 |
20.4 |
11.7% |
39.9 |
| % of
revenue |
25.6% |
26.6% |
|
26.6% |
26.4% |
|
26.5% |
| Operating
profit |
8.9 |
7.8 |
13.9% |
18.8 |
17.0 |
10.2% |
33.0 |
| % of
revenue |
20.7% |
21.9% |
|
22.0% |
22.1% |
|
21.9% |
| Adjusted
operating profit ** |
9.4 |
8.0 |
18.2% |
19.5 |
17.3 |
13.1% |
33.7 |
| % of
revenue |
21.8% |
22.3% |
|
22.8% |
22.4% |
|
22.4% |
| Basic EPS
(EUR) |
0.31 |
0.28 |
10.5% |
0.71 |
0.62 |
15.3% |
1.25 |
| Operating free
cash flow |
5.5 |
9.1 |
-39.6% |
16.6 |
20.8 |
-20.0% |
44.6 |
| Cash
conversion |
50.0% |
96.1% |
|
73.2% |
102.2% |
|
111.7% |
| Investments in
tangible and intangible assets |
-0.5 |
-0.9 |
-36.7% |
-2.8 |
-1.2 |
140.1% |
-3.1 |
| Net debt |
32.6 |
45.8 |
-28.8 % |
32.6 |
45.8 |
-28.8% |
37.6 |
| Leverage |
0.8 |
1.2 |
|
0.8 |
1.2 |
|
0.9 |
| Net working
capital |
33.0 |
36.5 |
-9.6 % |
33.0 |
36.5 |
-9.6% |
36.1 |
| Adjusted return
on capital employed (ROCE) |
51.7% |
47.7% |
|
51.7% |
47.7% |
|
44.2% |
| Equity
ratio |
49.8% |
46.3% |
|
49.8% |
46.3% |
|
51.0% |
| Number of
employees at end of period |
683 |
619 |
10.3% |
683 |
619 |
10.3% |
605 |
* 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. In May 2024, Harvia’s long-term
financial targets were adjusted to reflect the company’s growth
ambitions. Harvia targets an average annual revenue growth of 10%,
an adjusted operating profit margin exceeding 20%, and a net
debt/adjusted EBITDA below 2.5x. The future impacts of changes in
IFRS accounting standards have been excluded from 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:
I am pleased with Harvia’s performance in the second quarter of
2024, as we achieved significant sales growth and maintained strong
profitability.
In the second quarter, our revenue reached EUR 43.3 million,
increasing by 20.7% from the comparison period. The revenue growth
was driven especially by the strong performance in North America as
well as in Asia-Pacific and the Middle East. The strikes in Finland
in March postponed some deliveries from Finland from the first
quarter to the second one, also impacting the revenue positively.
Organic growth was 20.1%.
The market conditions in the second quarter remained favorable
in North America and APAC & MEA, where the awareness of sauna
and its health benefits have continued to increase. In North
America, market demand was high across channels and product groups,
and our sales performance was excellent in both full sauna
solutions and heaters. In APAC & MEA, our rapid growth reflects
the systematic work we are doing to grow our business in several
strategically important markets. The region’s revenue was also
supported by the timing of some major deliveries.
In Continental Europe, the market has shown some signs of
recovery since the last quarter of 2023, and the gradual
improvement continued also during the second quarter of 2024. In
Northern Europe, gradual positive market development combined with
our sales actions resulted in revenue growth in the region after
two years of declining revenue. We expect the market in Europe to
continue improving gradually, and we are working diligently to
capture that growth and further strengthen our position in the
market. Our overall strong sales performance was generated by the
growth of all product categories except spare parts and
services.
The second quarter’s adjusted operating profit was EUR 9.4
million, increasing by 18.2% from the comparison period. The
adjusted operating profit margin was 21.8% of revenue. We succeeded
in maintaining strong profitability while simultaneously increasing
investments aiming to drive growth. We have added resources
especially into sales and portfolio development.
Harvia’s operating free cash flow amounted to EUR 5.5 million.
During the quarter, we increased our inventories. Our materials
inventory in Finland normalized after inbound transportation was
impacted by the strikes in the first quarter. In addition, we
increased our inventories in the United States and Japan to support
sales. All this was visible in our cash conversion of 50.0% for the
period. For many previous quarters, the cash conversion has been
exceptionally high, even above 100%. Overall, our operative
performance during the quarter was robust, and I want to thank the
entire Harvia team and our partners for their dedication and good
work.
In May, Harvia arranged its first Capital Markets Day and
updated its long-term financial targets and strategy to reflect the
company’s strategic role, which the company defines as “Shaping the
global sauna market so that everyone has a reason to experience
sauna”. Harvia’s updated four strategic focus areas are: 1.
Delivering the full sauna experience; 2. Winning in strategically
important markets; 3. Leading in key channels, and 4. Best-in-class
operations and great people. We want to be an active market maker
to grow the global sauna market and create exciting innovations and
sustainable solutions while maintaining strong profitability and
operational performance.
The long-term attractiveness of the sauna market remains
unchanged. In addition to capitalizing on the organic growth
opportunities in different regions, Harvia intends to be an active
market consolidator in the industry and grow through acquisitions
when the right moment and opportunity arise. After the reporting
period on 23 July, Harvia announced the acquisition of ThermaSol, a
U.S. steam solutions manufacturer with net sales of USD 14.4
million in 2023. The acquisition will strengthen Harvia’s position
in North America and our capabilities especially in steam and
digital solutions. The transaction is another significant step
forward on Harvia’s growth journey, further solidifying our
industry leadership.
Press conference on financial results
Harvia will hold a webcast for analysts, investors and media on
8 August 2024 at 11:30 a.m. EEST. 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
https://harvia.videosync.fi/q2-2024/.
A recording of the webcast will be available after the event on
the company’s website
https://harviagroup.com/investor-relations/.
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
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 market of both private and professional
customers.
Harvia’s revenue totaled EUR 150.5 million in 2023. Harvia
Group employs over 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.
Read more: https://harviagroup.com
- Harvia-Plc-Half-year Review-2024-ENG
Grafico Azioni Harvia (TG:G1U)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Harvia (TG:G1U)
Storico
Da Dic 2023 a Dic 2024
