The Management Board of Leifheit AG (ISIN DE0006464506) has resolved the objectives and key elements of the FOCUS performance program, with the approval of the Supervisory Board. This comprehensive initiative includes reducing positions, introducing a new operating model, streamlining the Group's structures, and digitalizing key processes. The goal is to reduce complexity, shorten decision-making processes, and lower the cost base over the long term, aiming for a sustainable improvement in the Group's competitiveness, profitability, and resilience.
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.'
Based on current information, the organizational changes will require a Group-wide reduction of up to 70 positions. The implementation will take place in stages and in close consultation with employee representatives to ensure social responsibility. The Leifheit Group currently employs about 960 people, with approximately 360 in Germany.
The FOCUS program is expected to show its first positive effects in the 2027 financial year and lead to sustainable, recurring annual cost savings of EUR 7.5 million from 2028 onward. The implementation of these measures is anticipated to incur personnel and other operating expenses of up to EUR 9.6 million in total, of which approximately EUR 5.4 million will impact earnings in 2026.
In the first half of 2026, the Leifheit Group faced a declining market and weak consumer sentiment, achieving preliminary turnover of EUR 116.3 million (H1 2025: EUR 123.4 million) and earnings before interest and taxes (EBIT) of EUR –2.7 million (H1 2025: EUR 2.0 million). '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,' said Reindler.
Given the declining market and H1 business development, the Board of Management has adjusted its turnover forecast for full year 2026. Group turnover is now expected to be slightly below the previous year's figure of EUR 236.2 million, compared to the previous forecast of slight growth. Earnings and free cash flow will be impacted by special items from the performance program in 2026, with Group EBIT now expected at EUR 0 million, down from the prior forecast of EUR 10.0 million. Excluding FOCUS effects, EBIT before special items is expected at EUR 5.4 million. Free cash flow is now expected at EUR 0 million, versus the previous forecast of EUR 6.4 million. The performance program lays the foundation for sustained profitability improvement.
More information on Leifheit is available online at www.leifheit-group.com, www.leifheit.de, and www.soehnle.de.
