“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” – Nicky Walker, MD

Walker’s, the iconic Scottish shortbread maker, has seen its annual sales exceed £200 million for the first time as a rebranding continues to underpin demand at home and overseas.

Newly-filed accounts for the family-owned Speyside food producer show sales topped £201m in the year to the end of December 2024, marking a 9 per cent increase on the previous year. The firm said the “significant milestone” reflected the strength and appeal of the brand and the continued positive market response to its refreshed identity.

The 127-year-old business also attributed the revenue growth to a strong festive trading period, particularly in the UK, which drove domestic sales growth of 13.4 per cent. Growth overseas was also healthy with international markets reporting an increase of 5.8 per cent, with the US remaining a key market for the brand ahead of President Trump’s global trade tariffs.

Ongoing challenges from supply chain costs, inflation in key ingredients, rising labour bills and “logistical hurdles” resulted in an increase in the company’s operating cost base. In the face of those pressures, the firm continued its “positive collaboration” with suppliers to manage costs as effectively as possible.

As part of Walker’s 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 23 per cent increase in operating profits to £16.1m, while operating margins grew to 8 per cent, marking a 0.9 percentage point improvement on 2023.

Cash outflow last year amounted to £1.5m. The improved profitability has supported investment plans which “align with the long-term growth ambitions of the business”.

Managing director Nicky Walker described 2024 as an “encouraging” year for the business, which is based in Aberlour on Speyside.

“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,” he said.

“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.

“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.”

The famous company’s life in Charlestown of Aberlour began when Joseph Walker set up his bakers shop on the town’s High Street. Fast forward more than 125 years and the business has become a global byword for a Scottish delicacy that likely dates back to at least the 12th century.

The Walker’s tartan design is based on the tartan of Clan Grant. Aberlour sits at the heart of the “country of the Grants”, on the banks of the River Spey, whose pure, fast-flowing waters are represented by the blue threads running through the company’s tartan.

Walker, who was appointed to the board in 2007 as production director, and is said to have been instrumental, working alongside his late father, Joe, in developing the company’s facilities in Aberlour and Elgin, added: “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 third 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.”

Sir James Nicol Walker, known as Jim, was the grandson of the company founder, Joseph Walker, and helped build the brand into an award-winning exporter of the iconic Scottish biscuit. Born in Elgin in June 1944, Walker, who received a CBE in 1999 and a knighthood in 2022, was son of the late James and Winnie Walker, younger brother of the late Joe and Marjorie Walker.

In his role as joint managing director alongside his brother Joe, Sir Jim was the driving force of Walker’s sales growth, developing the business into a globally recognised brand, achieving £184m of turnover in 2023 – up from £40,000 in the year that he joined – and being awarded the Royal Warrant from Queen Elizabeth in 2002.

Export

Four times winner of the Queen’s Award for Export Achievement, Walker’s exports its distinctively packaged bakery products, which also include oatcakes, to some 100 markets worldwide.

In 2024, the company was granted a Royal Warrant of Appointment from His Majesty the King for the supply of shortbread and oatcakes to the Royal Household, following the granting of the Royal Warrant of Appointment by the late Queen Elizabeth II and Queen Mother in 2002 for oatcakes and for shortbread by the late Queen in 2017.

The firm, which has become one of Scotland’s most recognisable brands, stressed that its shortbread is made using “only the finest ingredients possible” and contains no artificial colours, flavourings or preservatives.