Soft drinks producer Highland Spring has achieved annual sales revenues of more than £100 million for the first time.
Chief executive Les Montgomery said the increase in demand for natural sourced water was due in part to “ongoing negative publicity around sugary soft drinks”.
The turnover of the group, based in Blackford, for 2014 includes plain, flavoured, brand, private label and export sales.
Mr Montgomery said the achievement, a rise of 2.4% from 2013, “fulfils one of the long-term strategic objectives set by the group”.
The gross margin rose by 4.2% to £44.6m. After administrative expenses, operating profit was down 13% to £3.4m and pre-tax profit was down 23% at £1.67m.
After costs incurred in launching the group in the flavoured water market and a historical VAT issue, the underlying operating profit of the core business was up 26% at £3.9m.
Mr Montgomery said the group will continue to be the UK’s leading supplier of natural sourced water with a 19.2% share of the domestic market. The market continued to be buoyant with a 1.8% growth in packaged waters as consumers turned increasingly to the product.
He added: “The increased consumer awareness of the need for healthy hydration, combining with ongoing negative publicity around sugary soft drinks plus increased support from retailers, all provide confidence that market growth levels are likely to be sustained over the coming two to three years.”
Highland Spring is planning a £20m extension to its Perthshire headquarters, including a new production line.