Highland Spring reported a 14% increase in annual profits to £ 4.9million, despite falling almost 3% in revenue to £ 100million.
The Perthshire-based bottled water supplier presented its trading figures in an update instead of accounts filed with Companies House.
Highland Spring said that a distribution deal it signed in 2015 with Lucozade Ribena Suntor (LRS) to supply “pulse and convenience channels” resulted in lower sales prices due to the takeover. charge by LRS for the promotion and distribution costs that had been incurred by Printemps des Highlands.
The group notes whether it had sold all these products directly because in 2015, the turnover “would have been 110 million pounds, an increase of 7.0%”.
Highland Spring said total sales rose to 525 million liters in the year 2016 through December, although the company does not break down sales of its own brand Highland Spring, which it noted in the accounts. audited that it had sold 235.1 million liters, against 221.3 million previously. year.
The company also did not provide a geographic breakdown of sales for 2016, although sales rose 2.7% in the UK in 2015 – its largest market – to £ 97.3million. sterling and that exports to the rest of the world rose 23% to £ 3.2 million.
However, sales had fallen by more than 6% in Europe during 2015 to reach £ 2.37million.
Commenting on 2016 performance, Highland Spring Group CFO Mark Steven said, “2016 saw our first full year of distribution through Lucozade Ribena Suntory (LRS).
“This long-term agreement has helped us increase the sales and distribution of our branded product line in the Impulse and Convenience channels, contributing to an increase in total sales volume of 7.1% over the course of the year.
“Our operating profit for 2016 was £ 5.6million (2015: £ 5million).
“This was achieved through efficiency gains resulting from an improved sales mix and increased use of our core bottling resources.
“In 2016 and 2017, we will have invested over £ 30million in increasing bottling capacity to meet current and expected market demand.
“This has enabled the installation of two new production lines at our Blackford factory, including the UK’s fastest and most technologically advanced PET bottled beverage line.
“We have also reinvested in our brand portfolio, giving Highland Spring a new look inspired by the Perthshire landscape that is home to our source: 2,000 acres of certified organic, pure, natural and unspoiled land.
“We ended 2016 as a market leader.
“Our two new production lines are now fully operational and this summer saw our return to television with our biggest brand campaign to date: Brave By Nature.
“We plan to increase our market share in 2017 with double-digit growth above the market. “
Highland Spring said it employed 468 people in its 2015 audited accounts.