The Management Board of Leifheit AG (ISIN DE0006464506), with Supervisory Board approval, has resolved the objectives and key elements of the FOCUS performance program to sustainably improve profitability. The program includes position reductions, a new operating model, streamlined Group structures, and targeted digitalization of key processes, aiming to reduce complexity, shorten decision-making processes, and lower the cost base 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." The organizational changes will require a Group-wide reduction of up to 70 positions, implemented in stages and in consultation with employee representatives. The Leifheit Group currently employs about 960 people, with approximately 360 in Germany.
The FOCUS program is expected to show first positive effects in fiscal year 2027, leading to sustainable, recurring annual cost savings of EUR 7.5 million from fiscal year 2028 onward. Implementation will incur total personnel and other operating expenses of up to EUR 9.6 million, of which approximately EUR 5.4 million will impact earnings in 2026.
Preliminary figures for the first half of business year 2026 show the Leifheit Group faced a declining market and weak consumer sentiment. The Group achieved 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). 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."
Consequently, the Board of Management adjusts its turnover forecast for full year 2026. Group turnover is now expected to be slightly below the previous year’s figure (EUR 236.2 million), compared to previous expectations of slight growth. Group EBIT is now expected at EUR 0 million for full year 2026 (previously at prior year's level of EUR 10.0 million), impacted by special items from the performance program. Excluding FOCUS effects, an EBIT before special items of EUR 5.4 million is expected. Free cashflow is now forecast at EUR 0 million, versus earlier expectations of EUR 6.4 million. The program lays the foundation for sustainable improvement in profitability.
More information on Leifheit is available online at www.leifheit-group.com, www.leifheit.de, and www.soehnle.de.
