The Edinburgh-based firm saw turnover increase by 6.6%, climbing from £47.5m to £50.6m.

Nairn’s Oatcakes, which this year celebrates its 130th anniversary, now employs 238 people across sites in Edinburgh and Midlothian, after starting with just two people in 1896.

Increased consumer demand coupled with the successful launch of a Marmite and cheese flavoured oatcake was credited for the sales growth in oatcakes. Alongside steady growth in existing domestic and export markets, Nairn’s also saw upticks in gluten-free product sales, including its biscuit and snack ranges.

However, the company’s annual reports also outlined significant cost increases to the business from National Living Wage increases, national insurance rises and additional taxes on packaging. While cost pressures are forecast to continue, the company believes it has enough brand strength to withstand these and capitalise on future opportunities for its oat-based products.

Colin Dingwall, managing director of Nairn’s Oatcakes, said: “Oatcakes remain a staple of healthy diets not just here in Scotland, but across the globe.

“As we look to celebrate 130 years of our business, we could not be prouder of those who help us to deliver high quality products and contribute to the excellent reputation of Scotland and the UK’s food and drinks industry. 

“In recent years, we have worked hard to improve and expand our range of baked products through flavours and formats. We continue to grow our gluten-free offerings so everyone can enjoy great tasting and healthy oat-based snacks.  As we look forward, like many other businesses, our business face challenges but we believe we have the brand and the team to continue to be successful in the future.”