Highland Spring Group saw a sharp increase in profit and sales last year as the bottled water category continued to grow faster than the overall retail market.
Also branded sales of bottled water in 2024 outperformed own label for the first time in two years.
Many non-alcoholic drinks categories experienced both unit and value declines, while natural source waters continued to demonstrate “remarkable resilience”, said the Perthshire-based company.
Sales of all bottled water soared by 10.8% to more than £1.8 billion. This far outpaced the wider retail market, which saw a modest increase of just 2.3%.
Highland Spring’s figures for the year to the end of December reinforced the company’s position as the UK’s top water brand with a retail volume share of 9.8% and a value share of 11%.
Cost-cutting, an easing of inflation and lower interest rates enabled it to report underlying operating profit of £14.2m from £6.5m in the previous 12 months. Pre-tax profit rose to £7.6m from £893,000 on a 13.5% rise in revenue to £148.2m from £130.6m.
“The business has continued to take steps to improve operational efficiencies and reduce overhead costs under continuous improvement plans with capital investment to deliver this where appropriate,” it said.
The launch of a new flavoured still water range – designed to meet growing consumer demand for healthier, great-tasting hydration options – has also driven accelerated growth by enabling the business to tap into the £400 million flavoured water category.
Highland Spring invested £10 million at the site in Blackford, unlocking about 25% of additional annual growth capacity.
Construction is now underway on a 7-megawatt, 23-acre solar farm which will generate approximately 20% of the electricity required at the Blackford site.
As part of the group’s commitment to the local community, a free-of-charge electricity supply will be provided to the local school and a network of EV car chargers for community use.
The group’s dedicated rail freight facility has been fully operational for nearly three years. Currently, 48% of water from the main bottling plant is transported by rail, significantly reducing reliance on road haulage.
To date, this shift has removed over 16,000 HGV movements from UK roads and over 400 million litres of water has travelled by rail during this period demonstrating the business commitment to sustainable logistics and reducing its emissions from source to shelf.
Simon Oldham, managing director, said: “The growing importance consumers place on health is a key driver behind the exponential growth of the bottled water category.
“At Highland Spring, we have remained focused on meeting this demand by continuing to evolve our brand and business — most recently through the launch of our new flavoured water range.
“I am incredibly proud of our impressive performance and the fact that our iconic Highland Spring brand has secured its place as the nation’s favourite way to hydrate.
“Looking ahead, we remain committed to a long-term strategy that reshapes our business, champions the provenance of the Highland Spring brand, and invests in innovative product and packaging solutions. Our goal is to create lasting value while making a positive impact on people, society, and the planet.”
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