Walker’s Shortbread Ltd has announced its full year financial results for 2025, reporting resilient sales of £197million (2% reduction on 2024) in the face of market volatility.
The 128-year-old family-owned business, like many companies, contended with complex environmental factors and trading conditions throughout the year. Domestically, trading was impacted by cautious customer ordering patterns whilst internationally, the U.S. a key market for the business, presented difficult trading conditions mainly due to the effects of tariff implementation.
Operationally, the business absorbed the impact of significant commodity and utility price escalations. Of particular significance was the escalation in butter costs compared to the previous year as well as continuing global affairs causing uncertainty in terms of availability. Ongoing labour cost increases and continued sector-wide labour shortages meant necessary increased utilisation of premium-paid overtime hours. These combined business pressures consequently impacted margins, resulting in an operating profit of £6.9million.
Despite these headwinds, domestic and international demand for Walker’s remains high with around 50% of produce successfully exported to around 100 different markets.
The Walker’s Shortbread Board is comfortable with the current strategy and will continue to focus on further operational efficiency through competitive tendering, longer-term contracts and continued investment in its people, operations and brand. Confidence in future business performance is underpinned by the strength of the Walker’s brand, including its partnership with global ambassador Sir Andy Murray, a robust balance sheet and a clear strategic focus on quality, new product development and opportunities for increased routes to markets.
To support this long-term growth strategy, the business also reinvigorated its leadership team during the year. Justin Stead was appointed as the new Chairman, bringing extensive global brand experience, alongside the appointment of Bryony Walker as Commercial Director. These appointments ensure the business is strongly positioned to navigate the current economic landscape and capitalise on future market opportunities.
Full year financial highlights for 2025:
- Sales reduced by £4million (2%) to £197million. This was driven by customer stock-building activity in 2024, alongside more cautious ordering patterns during 2025.
- Operating Profit reduced to £6.9million (2024: £16.1million). Commodity and utility price increases, specifically wholesale butter prices, combined with labour cost pressures adversely impacted margins during the year.
- Planned capital expenditure reflected the Group’s commitment to long-term capacity and operational efficiency, supported by a strong balance sheet and solid liquidity.
Commenting on the figures, Nicky Walker, Managing Director of Walker’s Shortbread said: “The Board took a deliberately cautious outlook for 2025, following a period of significant and sustained growth as the world recovered from the pandemic years. We were prepared for market headwinds and tough trading conditions, but the unprecedented convergence of US tariffs, shifting customer inventory patterns, continued governmental wage regulations and a significant double-digit % year-on-year increase in wholesale butter prices impacted our bottom line.
"While the external trading environment remains both challenging and complex, particularly regarding geopolitical factors and sector-wide labour availability, we are managing this from a position of historic strength. We continue to focus on the areas within our control and driving operational efficiency and maintaining an unwavering investment in our brand and our people is of paramount importance and we remain highly confident in the future of the business.
“Above all, Walker’s will continue to operate as a sustainable, environmentally conscious, family owned and managed business, based in the Highlands, with continued dedication to baking and bringing our finest quality produce to our much valued and loyal consumers.”