Highland Spring Group has reported a fall in profits amid a challenging trading environment and inflationary pressures.
The Scottish mineral water company posted a pre-tax profit of £893,000 for the year ended December 31, 2023, down from £1.5 million in 2022.
This came despite a 15.5% rise in sales to £130.6m, keeping the group on course to achieve its £200m turnover target by 2030, as the natural sources water category displayed “remarkable resilience” in the face of the cost of living crisis. The category registered a “small” year-on-year volume decline despite lapping record-breaking weather in the peak summer trading months of 2022.
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Perthshire-based Highland Spring said it moved successfully into the flavoured water market last year with a new range of still drinks that launched in April. It noted that the launch had been supported by a £10m investment at its main site in Blackford, which will provide around 25% (100 million litres) of extra growth capability every year.
The group is underlining its environmental credentials with the development of a 15-acre, seven megawatt solar farm, which will provide 20% of the Blackford site’s electricity needs. The new facility will provide electricity to a local school free of charge and supply a network of electric vehicle car chargers for community use.
The solar farm follows the launch of the group’s dedicated rail freight facility in Blackford, which became fully operational in January 2023. Some 40% of the water supplied from the main bottling plant in Blackford is now transported by rail, removing 8,000 HGV movements from the roads, and saving over 3,000 tonnes of carbon dioxide per year. Highland Spring said the “landmark” project contributes to its target to reduce near-term carbon emissions by 50% by 2030.
Simon Oldham, managing director of Highland Spring Group, said: “We continue to accelerate the evolution of our brand and business acting with agility and flexibility to meet the needs of our customers, partners, and consumers.
“I am extremely proud of our healthy performance and focus on driving growth, despite challenging market conditions, which is a testament to our strong, iconic brand and talented teams.
“We will continue to take a long-term approach to reshaping the business, growing, and promoting the provenance of the Highland Spring brand, investing in new and innovative product and packaging solutions to create value, whilst working hard to have a positive impact for people, society, and planet.”
The accounts show that Highland Spring Group employed an average of 413 people over the year, up from 400.
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