Sales for major Perthshire employer Highland Spring surged last year as the group sold more than 340 million litres of water.
That is a 6.3% rise from the year previous for the Blackford business, the UK’s leading brand of bottled water.
And it expanded its range this year to include cans of flavoured water for the first time.
Newly published accounts for Highland Spring show turnover rose to £94.1 million for the year to December 2021.
That is up from £88.1m the year previous. Its 2019 sales were more than £100m.
Highland Spring said online sales had fallen as Covid-19 restrictions were eased.
Growing brand the main priority
In his strategic report published alongside the accounts, outgoing chief executive Les Montgomery said growing the brand was a primary aim.
Mr Montgomery stood down at the turn of the year and was replaced by Mark Steven and Simon Oldham as joint managing directors.
He said: “A focus on growing the Highland Spring brand continues to be the main priority for the business, within increasing focus on expanding the business’ portfolio of products and packaging formats.”
Water sales return to near pre-pandemic
The UK water drinks market grew in 2021, returning to near pre-pandemic levels.
Sales of still water rose more than 11% from 2020 levels, while flavoured water and juice waters also grew extensively.
Mr Montgomery added: “Despite a challenging 2021, we remain confident in our long-term approach of continuing to promote the provenance of our brand.
He said the firm was committed to providing “category-leading experience, focusing on environmental sustainability and ensuring value creation as the wider economy and bottled water category recover from the impact of the Covid-19 pandemic.”
The accounts show Highland Spring posted a pre-tax profit of more than £700,000. That is compared to pre-tax losses of £1.8m in 2020.
Staff numbers fell from 408 in 2020 to 363 for the reporting period.
That comprises 275 production staff, 28 in sales and distribution roles and 60 in administration jobs.
An emphasis on sustainability
Highland Spring is placing an emphasis on sustainability in its investments.
These include the construction of a rail siding adjacent to its Perthshire facility. It has cost the group £5.5m so far.
This will allow it to move goods in a more environmentally friendly way.
The project, to be commissioned next year, will reduce the firm’s carbon footprint by 3,200 tonnes.
The company aims to be net carbon zero by 2040.
It is also experimenting with new packaging formats that are 100% recyclable.