Sales up at Walkers Shortbread

Nov 3 2008

Profits fall as company is hit by rising raw material costs

Family owned Scottish food company Walkers Shortbread has revealed sales last year increased by 8.9 per cent to a record £94 million.

Employee numbers exceeded 1400 for the first time but the 110-year-old Aberlour based company’s operating profits almost halved from £10.5m to £5.5 million.

Rising raw material costs were blamed with butter more than doubling in price.

The company said 2007 was a busy and operationally productive year but proved financially challenging with a competitive trading environment making it difficult to secure meaningful price increases.

Exports, which account for more than 35 per cent of the company’s turnover, increased with Walkers now providing products to more than 70 countries around the world.

Joint Managing director Jim Walker believes the business is well placed to sustain the business through this period of global economic uncertainty.

He said the strengthening of senior management last year also reflected the company’s commitment to remain an independent family owned business.

As a result of the changes his brother Joe Walker’s sons, Nicky and Richard, were promoted to product director and technical director and former Scottish & Newcastle executive David Edwards was appointed financial director.

Joe Walker continues to oversee production while Jim looks after marketing.

This month the company also launched a new product for Christmas – Ecclefechan tarts. Once a popular choice in bakeries throughout the country the tarts, which take their name from the quiet borders town best known as the birthplace of Victorian essayist Thomas Carylyle, had all but disappeared before Walkers decided to revive them.

The new tarts have already won a Gold award at the recent Guild of Fine Food Great Taste awards.

During last year the company opened a new 60,000 sq ft factory in Elgin to help meet growing production demands.

Last month the company’s efforts were recognised with an award from the Scottish Council for the Development of Industry for International Marketing and it also won the Food from Britain Exporter of the Year title in late 2007.