Leifheit AG Approves FOCUS Performance Program, Adjusts 2026 Forecast Amid Weak H1 Results

The Management Board of Leifheit AG, with Supervisory Board approval, has resolved the objectives and key elements of the FOCUS performance program, a comprehensive restructuring initiative aimed at sustainably improving profitability. The program includes workforce reductions, a new operating model, streamlined group structures, and targeted digitalization of key processes. These measures are designed to reduce complexity, shorten decision-making processes, and lower the cost base, ultimately enhancing 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."

The organizational changes will result in a group-wide reduction of up to 70 positions out of approximately 960 employees, with around 360 based in Germany. Implementation will be phased and conducted in close consultation with employee representatives to ensure social responsibility. The program is expected to generate first positive effects in fiscal year 2027, leading to sustainable annual cost savings of EUR 7.5 million from fiscal year 2028 onward. Total implementation costs, including personnel and other operating expenses, are estimated at up to EUR 9.6 million, with approximately EUR 5.4 million impacting earnings in 2026.

Preliminary figures for the first half of 2026 show group 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). The company attributed this to a declining market and weak consumer sentiment. 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 market decline and first-half performance, Leifheit has adjusted its full-year 2026 forecast. Group turnover is now expected to be slightly below the prior year's EUR 236.2 million, compared to previous expectations of slight growth. EBIT is forecast at EUR 0 million for 2026 (prior year: EUR 10.0 million), impacted by special items from the FOCUS program. Excluding these items, EBIT before special items is expected at EUR 5.4 million. Free cash flow is now projected at EUR 0 million (prior year: EUR 6.4 million). The company emphasizes that the performance program lays the foundation for sustainable profitability improvement.

More information on Leifheit is available at www.leifheit-group.com, www.leifheit.de, and www.soehnle.de.