Scottish manufacturer Walker’s Shortbread has seen its annual turnover climb by 16%, rising from £142.4 million to £164.6 million in the past financial year.
The Aberlour-based business released its annual results for the year ended 31st December 2022, revealing top-line growth fuelled specifically in US and UK markets, the latter resulting from a strong post-pandemic festive season.
Walker’s benefitted from increased sales in domestic and overseas markets during the trading period, with UK sales increasing by 23% from £62.6 million to £77 million and export revenues rose by almost 10% to £87.6 million.
Growth was underpinned by Walker’s rebrand, which launched in 2021 and continued through 2022, with strong performance in global travel retail coinciding with a return to air travel for many passengers.
However, ongoing pressures on global supply chains – intensified by the conflict in Ukraine – and a challenging inflationary environment impacted the business, as costs of raw materials rose, and service levels were squeezed. As a result, profits dipped from £6.2 million to £6 million compared to the previous trading year.
Implementing new strategies to mitigate challenges
The business sought to mitigate these challenges by introducing new production efficiencies and procurement strategies, both which contributed gains in the year, however, it was insufficient to mitigate the cost pressures in full meaning profits remained static at £6 million.
Walker’s Shortbread’s managing director, Nicky Walker, said: “It was pleasing to see demand return in a substantial way through 2022 after a couple of challenging years during the Covid-19 pandemic.
“The year presented numerous hurdles however, not least the continuing restrictions in the local labour market, but also substantial price increases coming from our suppliers. This volatility forced a review of all our incoming costs, with proactive conversations held with our entire supply chain.”
Walker said that despite the challenging global environment, a post-pandemic lift and return to travel and tourism was key to achieving top-line growth, along with the successful brand relaunch which is continuing in 2023 and 2024 as part of a global roll out.
He added: “The Walker’s brand relaunch was exceptionally well received last year, and we are excited at the prospect of the continued roll out through the remainder of this year and into next as we look forward to support the business’ aspiration for sustainable growth.
“I’d again like to acknowledge the support of our incredible team, whose efforts are invaluable to the business. It was especially pleasing that as part of our 125th anniversary celebrations in June we were able to say thank you to them in person, along with their families, at a company event.
“I, along with the board and executive committee, continue to focus our efforts on moving the business forward, further developing it for a bright, sustainable future.”
