Profits more than halve at Walker's Shortbread

A major Scottish shortbread maker has seen its profits more than halve, with rising butter costs and Donald Trump’s tariffs being blamed.

Latest accounts show Walker’s Shortbread’s pre-tax profits dipped to £8.7m in 2025, compared to £18m the year before.

Turnover at the family business also fell to £197m, down from £201m in 2024.

Operating profit took the biggest hit, dropping from £16.1m to £6.9m.

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.”

The company said domestic and international demand for its products remains high, with around half of its output exported to around 100 different markets.

The business also has retail outlets in Aberlour, Elgin and Aviemore.

In June, Scottish tennis legend Andy Murray became the firm’s first-ever brand ambassador in its 128 year history.

There were also changes to the Walker’s board last year, with Justin Stead appointed as chairman, alongside Bryony Walker as commercial director.

Her appointment came after the death of her father, Sir Jim Walker, in December 2024.

Sir Jim received a Knighthood in 2022 for services to the food industry. webershandwick via Supplied

After grandfather Joseph Walker founded the bakery in the Speyside village of Aberlour in 1898, Sir Jim joined the family business in 1962, and went on to build Walker’s into an award-winning exporter of Scottish biscuits.

Despite the drop in recent figures, Nicky Walker said the company remains confident going forward.

“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,” he said.

“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.”