Scotland’s Walker’s Shortbread returns enhanced annual sales performance

Scottish-based Walker’s Shortbread Ltd has confirmed its latest annual results, with the business attaining a near double-digit increase in turnover, with sales of £201 million recorded in the past year, writes Neill Barston.

The Aberlour-based firm’s improved results, which were up 9% year-on-year were attributed to the strength of its brands and decisive campaigns engaging with consumers – including linking-up with former Wimbledon tennis champion Andy Murray as a brand ambassador this summer.

Furthermore, the 127-year-old family firm also attributed this growth to a strong festive trading period, particularly in the UK, which drove domestic sales growth of 13.4%. Growth overseas was also healthy with international markets reporting an increase of 5.8%, with the US remaining a key market for the brand.

However, the brand conceded that there remain considerable tests in the market, including ongoing challenges from supply chain costs, inflation in key ingredients, rising labour costs and logistical hurdles, resulted in an increased growth in the company’s operating cost base. Despite these increases Walker’s continued their positive collaboration with suppliers to manage these cost pressures as effectively as possible.

As part of its long-term strategy, the board has continued to invest significantly in the business to improve operational processes, efficiencies and methodologies. These efforts, coupled with working closely with suppliers, drove a £3m (23%) increase in operating profits to £16.1m. While the business’ operating margin grew to 8.0%.

Sales grew by £17m (9%) to £201m. This was driven by strong festive trading in the UK, which supported increased UK sales of 13.4%, and continued healthy growth in international markets where sales rose by 5.8%.

Operating profit grew by £3m (23%) to £16.1m. Despite significant input cost pressures, Walker’s responded as proactively as possible to evolving market conditions, with ongoing operational efficiency improvements continuing to be implemented throughout the year.

Operating margin reached 8.0%, marking a 0.9% improvement on 2023.
Cash outflow of £1.5m. Improved profitability has supported investment plans which align with the long-term growth ambitions of the business.

Nicky Walker, Managing Director of Walker’s Shortbread, commented: “2024 has been an encouraging year for Walker’s Shortbread. To exceed £200m in sales is an incredible achievement for the business and this milestone is testament to the continued hard work and commitment of our workforce.

“As a business we are proud of our rich history and heritage and we are increasingly focused on protecting the business to ensure generations to come can continue to enjoy ‘Scotland at its Finest’. We are pleased to see some of the improvements and efficiencies we have made internally working in conjunction with our brand revitalisation which has undoubtedly aided our Commercial operations, having a positive impact on performance.”

Nicky Walker continued: “Despite significant growth this year, we are maintaining a pragmatic and cautious outlook, as we continue to try to manage external political and economic factors putting pressure on the business, our supply chains and our customers.

“2024 was also a poignant year for the business following the extremely sad and sudden passing of Sir James Walker in December. This sadly marked the end of the 3rd generation of the family whose leadership and vision were instrumental in shaping the business into the world-renowned brand it is today. We will continue to honour their legacy as we plan for the future and as always, we are committed to serving our customers, employees, stakeholders and the local Speyside community from our home in the heart of the Scottish Highlands.”