Walker’s Shortbread celebrated its 125th anniversary in style with pre-tax profits rising by £9.7 million.
The iconic Aberlour company has labelled a few contributing factors behind its positive financial results for 2023.
Walker’s Shortbread’s latest accounts showed pre-tax profits rose to £14.8m, compared to £5.1m in 2022.
The manufacturer said it achieved this through “strategic forward planning” as well as launching a new brand identity.
Managing director Nicky Walker said it was “necessary” the firm also put its prices up for the first time in four years, which in turn helped with results.
Its turnover grew by 12%, with sales reaching £183.8m, up from £164.6m.
Pre-tax profits up by 190%
Mr Walker believes “serious strategic decisions” in the past couple of years are behind the profit boost.
He said a fairly heavy marketing campaign, automatic lines and an inward look at its own cost structure proved important.
Mr Walker said: “I think all of our work in the past couple of years was culminated in these results.
“All these bits and pieces came together, we also made a lot of decisions within our own cost structure and efficiency.
“We don’t like to make this call and it’s always the last decision but a price rise was necessary to deal with our rising costs.”
Walker’s exports its iconic shortbread all over the world. The company also has retail outlets in Aberlour, Elgin and Aviemore.
Sales at home grew by 11.4% while in overseas markets they grew by 11.9% with Walker’s now exporting products to almost 100 markets globally.
Mr Walker added: “I think accounts can be misleading when comparing to previous years and 2022 wasn’t such a good year for us.
“So we were starting from a pretty low base. In turn, the year looked pretty magnificent but in reality it’s what we expect profitability wise.”
Walker’s Shortbread will build on accounts ‘with caution’
Mr Walker said there is a lot to look forward to going forward, however he believes Walker’s needs to be adaptable to global events.
Suez Canal pirates, the Ukraine conflict and American port strikes have all impacted Walker’s, according to the managing director.
Mr Walker said: “We’re aware of what is going on around the world and we need to be cautious at times.
“What’s going on in Ukraine, the Suez Canal and now strikes in American ports – all out with our control, all impacting our business.
“We are really optimistic about the future and we’ve invested substantial amounts in automatic lines.
“There’s a few things lined out for the future and we’re working on a multi-year strategy at the moment.
“We intend to stay here, as a family business and engage in local communities.”
Mr Walker said the shortbread finger is still the most popular and recognisable product.
He thanked his staff for their “amazing” contributions and hard work in the past 12 months.
Mr Walker added: “Through Covid, through Brexit, and through everything else our staff have been amazing. Without them we would be scuppered.”
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