The Management Board of Leifheit AG, with the approval of the Supervisory Board, has resolved the objectives and key elements of the FOCUS performance program, a strategic initiative designed to sustainably improve the Group's competitiveness, profitability, and resilience. The program includes reducing positions, introducing a new operating model, streamlining Group structures, and digitalizing key processes. These measures aim to reduce complexity, shorten decision-making processes, and lower the cost base over the long term.
Alexander Reindler, CEO of Leifheit AG, stated: "We are realigning the Leifheit Group to a structurally changed market environment. This requires short-term adjustments to our organization in order to be more successful in the long term. With FOCUS, we are making Leifheit simpler, faster, and more customer focused. We aim to increase our effectiveness and, with an agile organization, lay the groundwork for sustainable, profitable growth."
The organizational changes are expected to require a Group-wide reduction of up to 70 positions out of approximately 960 employees, with around 360 based in Germany. Implementation will occur in stages, in close consultation with employee representatives to ensure social responsibility. The FOCUS program is projected to show positive effects as early as fiscal year 2027, leading to sustainable, recurring annual cost savings of EUR 7.5 million from fiscal year 2028 onward. Implementation expenses, including personnel and other operating costs, are anticipated to total up to EUR 9.6 million, of which approximately EUR 5.4 million will impact earnings in 2026.
In the first half of 2026, Leifheit faced a declining market and weak consumer sentiment. Preliminary Group turnover reached EUR 116.3 million, down from EUR 123.4 million in H1 2025, while earnings before interest and taxes (EBIT) fell to EUR –2.7 million compared to EUR 2.0 million in the prior-year period. Reindler commented: "Our business development in the second quarter fell short of our expectations. This makes it even more important for us to act decisively now: With FOCUS, we are improving the Group’s operational efficiency and resilience. At the same time, we are consistently driving forward our strategic growth initiatives - through innovations in our core segments, such as the expansion of our successful Black Line and the launch of the Pegasus Rock Solid standing dryer, as well as enhanced marketing activities in collaboration with our retail partners."
Given the declining market and first-half performance, the Board of Management has adjusted its full-year 2026 turnover forecast. Group turnover is now expected to be slightly below the previous year's figure of EUR 236.2 million, compared to previously forecast slight growth. EBIT for 2026 is now expected at EUR 0 million, down from the prior forecast of EUR 10.0 million, due to special items from the performance program. Excluding these effects, EBIT before special items is expected at EUR 5.4 million. Free cash flow is now forecast at EUR 0 million, versus the previous expectation of EUR 6.4 million. The FOCUS program is intended to lay the foundation for sustainably improved profitability.
More information on Leifheit is available online at www.leifheit-group.com, www.leifheit.de, and www.soehnle.de.
