One of Türkiye’s leading hygienic tissue producers, Lila Kağıt, announced solid financial results for the year ended 2025. The company generated TRY 13.6 billion in net sales revenue, while maintaining a gross profit margin of 30.1%, reflecting disciplined cost management and a profitability-focused strategy.
Lila Kağıt CEO Alp Öğücü shared his assessment of the company’s performance and ongoing investments.
Financial Performance: TRY 4.1 Billion Gross Profit, TRY 2.6 Billion EBITDA
In 2025, total sales volume reached 192,000 tons. The company reported TRY 4.1 billion in gross profit and TRY 2.6 billion in EBITDA, with an EBITDA margin of 19.2%. Net profit for the period increased 11% year-on-year to TRY 1.7 billion.
Commenting on the year, Öğücü said:
“The year 2025 was marked by heightened geopolitical risks and global uncertainties. Despite fluctuations in pulp prices driven by international trade policies and intensified pricing competition, we turned challenges into opportunities through our profitability-focused strategy and closed the year with a strong financial performance.”
Converting Sales Grow, Jumbo Roll Segment Contracts
According to the company, converting sales increased 13%, supported by strong brand performance and positive momentum in both domestic and international markets. However, jumbo roll sales declined 16%, primarily due to competitive pressures in pulp and semi-finished product pricing stemming from global trade dynamics.
Öğücü added:
“In 2025, our total sales volume reached 192,000 tons and net sales revenue amounted to TRY 13.6 billion. Through effective and efficient cost management, we achieved a gross profit margin of 30.1% and maintained a strong EBITDA margin of 19.2%. Our net profit increased by 11% year-on-year to TRY 1.7 billion.”
Dividend Proposal: TRY 900 Million
As part of its shareholder value strategy, the company’s Board of Directors resolved to propose a gross dividend distribution of TRY 900 million from 2025 earnings for approval at the Annual General Meeting.
“These results reflect our profitable business model, effective cost management, and disciplined financial policies.”
Investments Continue with Strong Cash Flow
Lila Kağıt invested more than TRY 1 billion in 2025 for its ongoing Erzurum factory project. Including smart warehouse and automation investments at its Ergene facility, total capital expenditures reached approximately TRY 1.5 billion during the year.
“Supported by our strong cash-generating operations, our investments continued uninterrupted throughout 2025. We expect to start production at our converting facility in Erzurum in the second quarter of 2026. These investments will strengthen our operational excellence and prepare Lila Kağıt for the future in line with our sustainability goals.”
Outlook for 2026: Cautiously Optimistic
The company maintains a cautiously optimistic outlook for 2026. Growth is expected in both domestic and international markets, supported by diversification in the jumbo roll segment, normalization in post-tariff market conditions, and the contribution of the Erzurum facility to converting operations.
“Despite an intensive investment cycle, we aim to maintain our net debt/EBITDA ratio at approximately +1.0x in 2026.”
Sustainability Focus: 2030 Targets and 2050 Carbon Neutral Goal
Emphasizing sustainability as a strategic priority, Öğücü stated:
“We see sustainability not as a choice, but as a necessity, and we place it at the core of our business. We continue our efforts toward our 2030 sustainability targets and our goal of becoming carbon neutral by 2050. Regardless of external challenges, we remain committed to creating sustainable value for our shareholders and stakeholders.”
