Leifheit AG, the German household goods maker behind the Leifheit and Soehnle brands, has lowered its guidance for the 2026 financial year and is accelerating the structural overhaul known as the FOCUS performance program, the company announced on NEWMEDIAWIRE. The move matters beyond one company: it shows how persistently weak consumer demand in Europe is forcing mid-sized brand manufacturers to cut costs and reorganise rather than wait for a market recovery.
According to preliminary figures, the Leifheit Group generated turnover of EUR 169.1 million in the first nine months of 2026, down from EUR 179.0 million a year earlier. Group earnings before interest and taxes came in at EUR -2.9 million, compared with EUR 5.4 million in the same period of 2025, and included EUR 2.0 million of special items tied to FOCUS. In the third quarter alone, EBIT was EUR -0.2 million versus EUR 3.4 million a year earlier. Management said Leifheit still gained market share in its core business and strengthened its competitive position despite the decline.
For the full year, the Management Board now expects turnover to fall in the mid-single-digit percentage range from EUR 232.6 million, and Group EBIT to land between EUR -5 million and EUR -6 million, against previous guidance of EUR 0 million. The forecast includes roughly EUR 7 million in special items for FOCUS and provisions linked to the early termination of the Chief Operating Officer's contract. Excluding one-offs, EBIT before special items is expected at around EUR 1 million to EUR 2 million. Free cash flow is now projected at EUR -1 million to EUR -2 million, down from an earlier expectation of EUR 0 million and a prior-year figure of EUR 6.4 million.
The Supervisory Board has also resolved to reduce the Management Board from three members to two. Igor Iraeta Munduate, the Chief Operating Officer, and the Supervisory Board mutually agreed to end his employment as of 31 December 2026. Stefan De Loecker, Chairman of the Supervisory Board, said consolidating responsibilities at board level streamlines decision-making, increases organisational agility and contributes to sustainable cost reduction, while crediting Iraeta Munduate with developing the Operations division and driving efficiency, supply chain and digitalisation initiatives.
CEO Alexander Reindler said the company is accelerating its transformation precisely because the market remains challenging, adding that FOCUS measures are proceeding according to plan and strategic initiatives will continue in the fourth quarter. The program includes a new operating model, streamlined Group structures, targeted digitalisation and staff reductions, with one-off expenses of up to EUR 9.6 million expected to give way to recurring annual cost savings exceeding EUR 8 million from 2028. Leifheit is also continuing a brand relaunch, modernising product presentation in stores and online. More detail is available in the original release.
