Q3 2024 Harvia Oyj Earnings Call Transcript
Key Points
- Harvia PLC (HRVFF) achieved a 14% increase in revenue for Q3 2024, with organic growth at 8%.
- The acquisition of Thermasol boosted growth, particularly in North America, contributing to a 40% increase in sales in the region.
- Adjusted operating profit rose by 28.8% to EUR8.9 million, representing 22.9% of revenue.
- Strong performance in high-margin regions like North America and Asia Pacific contributed to improved profitability.
- Harvia PLC (HRVFF) continues to innovate, launching new products such as a solar-powered electric sauna and a wood-burning heater model.
- Sales in Northern Europe declined by 7%, largely due to challenging market conditions in Finland.
- The acquisition of Thermasol had a short-term negative impact on relative profitability due to its lower EBITDA margin.
- Operating free cash flow decreased to EUR3.4 million, primarily due to increased inventory levels.
- The Scandinavian hot tubs segment experienced a decline, impacting overall sales in North Europe.
- Increased investments in inventory and working capital led to a higher net debt and lower cash conversion rate.
Hello, everyone and welcome to Harvia's third quarter 2024 earnings webcast. My name is Matias Jarnefelt, I'm the CEO of the company and with me, I have Ari Vesterinen, who's our Chief Financial Officer. So today we have outlined for the presentation as usual so I will start by covering the highlights and key numbers from quarter three I will also talk about our strategy and how we are making progress in implementing it after my part Ari Vesterinen and will cover the numbers in more detail after which we would be happy to answer your questions, which as usual you can submit via the chat box. So let's talk about the quarter three, we grew both organically and through acquisition revenue increased by 14% to 38.7 million EUR organic revenue growth was around 8%. As in the past quarters, North America and Asia Pacific continued to perform strong, also continental Europe grow, but northern European market remained challenging and our sales declined there as we acquired Thermasol during the summer and it has been part of our figures for
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