Walker’s has reported a 2 per cent reduction in sales to £197m in its full-year results for 2025, which was negatively impacted by challenging trading conditions according to the company.

The business stated trading was affected by cautious consumer ordering patterns, while the US-imposed tariffs significantly negatively affected the international market performance.

Walker’s operating profit reduced to £6.9m from £16.1m due to rising commodity and utility prices which were absorbed by the company.

Additionally, the business cited increasing labour cost pressure as an adverse effect on margins during the year.

The Walker’s Shortbread board plans to improve the results through competitive tenders, longer-term contracts and continued investment in the people, operations and brand.

The business also changed its executive leadership team during the year to support its long-term growth strategy.

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Justin Stead was appointed as the new chairman while Bryony Walker stepped into the role of commercial director.

Nicky Walker, MD 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.

“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. 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.”