Walker’s Shortbread has reported a doubling of operating profits, from £3m to £6.2m year-on-year.
The Aberlour-based business also posted an increase in turnover, from £132.4m to £142.4m, in its accounts for the year ended 31 December 2021
Export revenues increased from £72.6m to £79.8m, which was characterised by the report as "a strong response to the ongoing Covid-19 pandemic challenges, which dominated most of the prior year".
These manifested as supply chain difficulties and concerns around the safety of staff, as well as reductions in labour availability.
Profits were assisted by growth in overseas markets, with seasonal festive markets at home and abroad also promoting growth during 2021.
"Further growth in profitability was suppressed, particularly in the latter part of the year, by disruptions in global supply chains as pandemic-related lock downs impacted several ports around the world leading to increased costs and delays for inbound raw materials and outbound finished goods," the statement noted.
The board and executive committee has therefore spent time assessing the impacts of these operational challenges and emerging inflationary pressures.
"This approach was evidenced by the launch of the new brand identity for Walker’s Shortbread, which builds upon the long-lasting appeal the brand has developed and enjoyed over decades and seeks to appeal to new and existing consumers alike," the report added.
The year also saw the death of joint managing Director Joe Walker, who had served the company for 66 years.
Sir Jim Walker signalled his intention to step back from his role as joint managing director during 2021, with Nicky Walker being promoted to managing director this January.
Nicky commented: “2021 was an incredibly challenging year to navigate and we’re pleased with the results and the return to pre-pandemic trading levels.
“Operating conditions continued to be challenging but our top priority throughout the year continued to be the safety and wellbeing of our team.
“We accept that the trading conditions in 2022 are equally, if not more, challenging given the many difficulties facing world economies, but we are committed to transitioning the business accordingly to maintain a sustainable footing for the future.”
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