Walker’s Shortbread Ltd has warned that its “traditional staffing levels and operating model remain under considerable challenge” as inflation hurts the firm.

In its 2024 results, Walker’s said sales grew 9% to £201 million “driven by strong festive trading in the UK, which supported the increased UK sales growth of 13.4%, and continued healthy growth in international markets where sales rose by 5.8%.”

Profit before taxation rose to £18 million from £14.8 million.

However, Walker’s said: “The inflationary environment, which continues to affect multiple cost areas across the business, remains challenging and the significant pressures experienced in recent years are expected to persist.

“The business continues to closely monitor the impact of these pressures. In addition, our traditional staffing levels and operating model remain under considerable challenge.

“The business continues to be future focused, with a commitment to provide a taste of ‘Scotland at its Finest’ throughout the world, at the heart of our actions.

“This will be supported through continued investment in our people and our infrastructure to ensure we best navigate the ever increasingly competitive markets in which we operate.

“In conclusion, and notwithstanding these very significant challenges, we remain focused on what we can control, namely supplying the world’s finest shortbread to our customers and consumers.

“We continue to operate in a sustainable and environmentally conscious manner, whilst creating employment in the heart of the Highlands of Scotland, delivering for our shareholders, investing in the future and maintaining financial discipline.”

The company added: “The year under review saw significant top-line sales growth, with the business reporting sales in excess of £200m for the first time …

“The business faced continued supply chain cost pressures across key commodities, alongside rising labour costs and logistical challenges throughout 2024.

“These factors resulted in increased growth in our operating cost base. To mitigate this, the business continued to implement enhanced forward planning strategies and worked closely with suppliers to secure sustainable cost price adjustments while minimising, as far as possible, the impact on our customers.”