According to the company’s annual report for the year ending 22 February 2025, pre-tax profits dropped sharply to £841,447, down from £4.1 million the previous year. This decline occurred even as the Uddingston-based firm achieved a turnover of £87.7m, an increase from £87m in 2024.

The directors attributed the squeeze on margins to “unprecedented increases” in raw material costs, specifically citing the global cocoa crisis and the lingering economic effects of the invasion of Ukraine.

The company’s gross profit margin decreased to 22.4%, down from 26.7% in the prior period. The board warned that these high input costs remain “very challenging” and are expected to continue impacting financial performance.

Despite these headwinds, the 135-year-old family business maintained its commitment to long-term stability over short-term gain. Tunnock’s continued to invest heavily in its future, with capital expenditure on new plant and machinery totalling £2.2 million during the period. The company stated this investment is essential to expand capacity and maintain its market position.

The business, famously helmed by Sir Boyd Tunnock, employed an average of 653 staff during the year, primarily within manufacturing at its South Lanarkshire factory. Employee well-being remains central to their strategy, with the directors noting that staff are considered part of the “Tunnock Family”.

Regarding shareholder returns, the company paid out dividends amounting to £1 million, consistent with the previous year. The highest-paid director received a total remuneration package of £348,348, including pension contributions.

Looking ahead, the directors affirmed their strategy to continue investing in “plant, people and products” to expand the distribution of Tunnock’s iconic biscuits both across the UK and internationally.