Scottish-founded Walker’s Shortbread has posted its latest annual results, with market volatility cited as key to a 2% drop in sales, to £197 million for the group’s 2025 financial year performance, reports Neill Barston.

The company, which now stands as a 128-year-old family-owned business has contended with a number of factors including cautious customer ordering, as well as the impact of tariffs for US markets.

Significantly, the company that has seen a well-received engagement campaign with former Wimbledon Champion Andy Murray, has also  absorbed the impact of significant commodity and utility price escalations.

According to the firm, of particular note was the escalation in butter costs compared to the previous year as well as continuing global affairs causing uncertainty in terms of availability.

Ongoing labour cost increases and continued sector-wide labour shortages meant necessary increased utilisation of premium-paid overtime hours. These combined business pressures consequently impacted margins, resulting in an operating profit of £6.9m.

Despite these headwinds, domestic and international demand for Walker’s remains high with around 50% of produce successfully exported to around 100 different markets.

Moreover, the Walker’s Shortbread Board is comfortable with the current strategy and will continue to focus on further operational efficiency through competitive tendering, longer-term contracts and continued investment in its people, operations and brand.

To support this long-term growth strategy, the business also reinvigorated its leadership team during the year. Justin Stead was appointed as the new Chairman, bringing extensive global brand experience, alongside the appointment of Bryony Walker as Commercial Director. These appointments ensure the business is strongly positioned to navigate the current economic landscape and capitalise on future market opportunities.

Commenting on the figures, Nicky Walker, Managing Director of Walker’s Shortbread said: “The Board took a deliberately cautious outlook for 2025, following a period of significant and sustained growth as the world recovered from the pandemic years. We were prepared for market headwinds and tough trading conditions, but the unprecedented convergence of US tariffs, shifting customer inventory patterns, continued governmental wage regulations and a significant double-digit % year-on-year increase in wholesale butter prices impacted our bottom line.

“While the external trading environment remains both challenging and complex, particularly regarding geopolitical factors and sector-wide labour availability, we are managing this from a position of historic strength. We continue to focus on the areas within our control and driving operational efficiency and maintaining an unwavering investment in our brand and our people is of paramount importance and we remain highly confident in the future of the business,” adding that the company would continue its cornerstone polices of being a sustainable and environmentally-conscious company.