Harrogate Spring Water’s revenue fell by 9% in 2025, although its reported profit after tax rose to more than half a million pounds, according to newly published financial statements.

The company, part of French multinational Danone, recorded revenue of £33.7 million in the year to December 31, 2025, down £3.28 million from £36.98 million the previous year.

Its profit after tax increased from £5,640 in 2024 to £549,045 in 2025. However, the company warned that the figures are not directly comparable because of a major restructuring of its operations during the year.

In May 2025, Harrogate Spring Water transferred its sales and distribution activities to Nutricia Limited, another Danone subsidiary specialising in medical nutrition. Harrogate Spring Water retained its production operations and now supplies bottled water to other companies within the Danone group for distribution in UK and international markets.

The restructuring has effectively turned the Harrogate business into a manufacturing operation, rather than one responsible for the entire process from production to distribution.

The company's gross profit fell from £10 million to £5.62 million. Its accounts also show an operating loss of £2.74 million, compared with an operating profit of £1 million in 2024, although it ultimately reported a profit after tax of £549,045.

The company's financial performance has local significance because it pays North Yorkshire Council an annual levy equivalent to 0.5% of net sales for the use of Harrogate's name. The payment previously went to Harrogate Borough Council, which was abolished in 2023 as part of local government reorganisation.

The accounts also show that the company's workforce increased from 82 to 85 employees, while its total wages and salaries fell from £4.47 million to £4.29 million.

Appeal looming

The financial results come as Harrogate Spring Water pursues plans to expand its factory on Harlow Moor Road. This month, the company announced it was appealing North Yorkshire Council's decision to refuse planning permission for the proposed expansion, which would double the number of production lines from two to four.

Managing director Richard Hall has said the company is well placed to grow.

Separately, Harrogate Spring Water is creating a fourth borehole at Killinghall. The project will involve extracting water from a new site on Otley Road and transporting it to the factory through a newly constructed pipeline.