Lila Kağıt Closes 2025 with Strong Financial Performance

Lila Kağıt, Turkey's leading hygiene tissue manufacturer, announced net sales revenue of TRY 13.6 billion and a gross profit margin of 30.1% based on its 2025 year-end financial results. Alp Öğücü, General Manager of Lila Kağıt, provided commentary on the company's 2025 year-end financial results and ongoing investments.

Lila Kağıt, which exports to 81 countries across 5 continents and operates as one of the largest players in the tissue sector through its Sofia, Maylo, UltraBerrak, and Nua brands, saw General Manager Alp Öğücü provide assessments on the company's 2025 year-end financial results and ongoing investments.
Lila Kağıt General Manager Alp Öğücü commented as follows on the matter:

"The year 2025 that we left behind was a period marked by intense geopolitical risks and uncertainties on a global scale. Despite fluctuations in cellulose prices stemming from international trade policies and the resulting competition in sales prices, Lila Kağıt turned challenges into opportunities through the profitability-focused strategy we consistently pursued, closing the year with strong financial performance. In 2025, our total sales volume reached 192 thousand tonnes, while our net sales revenue climbed to TRY 13.6 billion. In converting sales, we recorded 13% growth driven by our brands' strong performance and positive momentum in both domestic and international markets. In bobbin sales, we experienced 16% contraction due to the competitive impact created by international trade policies on cellulose and semi-finished product sales prices. Our gross profit reached TRY 4.1 billion, while EBITDA stood at TRY 2.6 billion. Our gross profit margin reached 30.1% through effective and efficient cost management, while our EBITDA margin held at a strong 19.2%. Our net period profit grew 11% compared to the prior year, reaching TRY 1.7 billion. In line with our strategy to share the value we create with all our shareholders, we have decided by the Board of Management to submit for the approval of our partners at the ordinary general meeting a gross profit distribution of TRY 900 million from 2025 earnings. These results reflected our profitable business model, effective cost management, and disciplined financial policies."

"We continued our investments with strong cash flow"
Öğücü shared that they executed investment expenditures exceeding TRY 1 billion in 2025 for the ongoing Erzurum facility investment, stating, "Our investments continued uninterrupted in 2025, also supported by the contribution of our operations that generate strong cash flow. At our Erzurum facility, we expect to commence production at our Converting facility in the second quarter of 2026. Together with our smart warehouse and automation investments to be implemented at our existing Ergene facility that will contribute to productivity, our total investment expenditures in 2025 reached approximately TRY 1.5 billion. Through these investments, we aim to strengthen both our operational excellence and prepare Lila Kağıt for the future in line with our sustainability targets."

"We remain cautiously optimistic for 2026"
Expressing that they maintain cautious optimism for 2026, Alp Öğücü stated, "We foresee growth in both domestic and international markets through market equilibrium in the bobbin business, normalizing market conditions following tariffs, and the contribution of our Erzurum facility in the converting business. Through our completed and ongoing investments, we are demonstrating in concrete terms the quality growth appetite and commitment we have expressed from the outset. In 2026, despite the intense investment cycle, we target maintaining our net cash/EBITDA ratio at approximately +1.0x level.

On the other hand, we view sustainability not as a choice but as a necessity, and we are placing it at the core of our business in this regard. As an indicator of the steps we have taken in this area, we continue our work toward our 2030 sustainability targets and carbon neutrality by 2050. Regardless of how challenging conditions may be, we continue with the same determination in creating sustainable value for our shareholders and all our stakeholders," he said.