Lila Kağıt's Net Profit for the Period Rises 19%

Lila Kağıt, Turkey's leading hygiene tissue manufacturer, announced net profit of TRY 930 million for the first half of 2025. Alp Öğücü, CEO of Lila Kağıt, provided commentary on ongoing investments.

Lila Kağıt, one of the largest players in the tissue sector with exports to 81 countries across 5 continents and operating the brands Sofia, Maylo, UltraBerrak, and Nua, is led by CEO Alp Öğücü, who commented on the company's second-quarter 2025 financial results and ongoing investments.

According to Lila Kağıt's 2025 financial results, the company maintained its net profit position at TRY 930 million in the first six months of the year, while gross profit reached TRY 1 billion 957 million. Net profit margin showed an increase of 4.4 percentage points compared to the same period last year, rising to 15.4%, while gross profit margin reached 30.5%, and EBITDA margin was realized at 19.6%.

As of 30 June 2025, the Net Financial Debt / EBITDA (last 12 months) ratio was recorded at (-) 1.45. The company, with a net cash position of TRY 3 billion 511 million, demonstrated a strong equity structure with equity ratio continuing to grow steadily over the years in line with increasing profitability, and equity to total assets ratio realized at 78%.

The company also made a gross profit distribution of TRY 885 million from 2024 earnings in July and was included in the backup shares list of the "BIST Dividend 25 Index" for the period 01/08/2025 – 31/10/2025 with its regular dividend distribution structure. The company aims to permanently maintain its place in dividend indices in the future in line with its profit distribution policy.

"We spent TRY 643.9 million on the investments we committed to"
Öğücü, noting that they are continuing investments at full pace in line with their sustainable growth strategy, stated: "Following our public offering in 2024, we continue to use our resources for our ongoing investments as disclosed in our prospectus. In this context, in the first 6 months of 2025, we have made investment expenditures of TRY 643.9 million, of which TRY 253.5 million is for the Ergene production facility and TRY 389.1 million is for the Erzurum production facility."

Production begins at Erzurum facility in second half of 2025
Sharing information about the Erzurum production facility, where the total investment amount is expected to exceed TRY 3 billion and the first-phase converting production activities are expected to commence in the second half of 2025, Öğücü continued: "In the initial phase, we will process parent rolls imported from our existing Lila Kağıt factory in Tekirdağ Ergene and convert them into hygiene tissue products such as toilet paper, paper towels, facial tissue, and napkins. In the second phase, with the commissioning of the fifth paper production line in Erzurum by 2027, we aim to reach annual gross paper production of 70,000 tonnes. Through this, we will increase our existing gross production capacity of 271,000 tonnes to reach a capacity of 341,000 tonnes."

Lila Kağıt supplies raw materials to numerous tissue brands worldwide
With the parent rolls it produces, Lila Kağıt supplies raw materials to numerous tissue brands worldwide. According to the company's 2025 first-half financial results, the share of exports in total sales was realized at 68%. While a significant portion of total export sales consists of parent roll sales, 94% of parent roll sales were made to export markets.

Disclosed sustainability report in compliance with Turkey Sustainability Reporting Standards
Lila Kağıt, whose shares began trading on the exchange in 2024, is not yet subject to mandatory sustainability reporting in compliance with Turkey Sustainability Reporting Standards (TSRS), but with its vision of being a pioneer in the sector, it published its sustainability report in its first year along with its second-quarter financial results. In this context, Lila Kağıt aims to incorporate sustainability approach into all business processes and advance its sustainability performance each year with a philosophy of continuous improvement.