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04
Oct 2021
Last Updated: 04/10/2021
Harrogate Spring Water blames pandemic as profits fall sharply
Profits declined from £8.3m to £1.9m and the company made a loss after tax, its latest accounts reveal. The company blames declining sales of bottled drinking water in hotels, restaurants and on aeroplanes during covid.
Harrogate Spring Water's headquarters.
Harrogate Spring Water has reported a sharp fall in profits, blaming a decline in bottled drinking water in hotels, restaurants and on aircraft due to covid.
The company, which was bought by French multinational Danone in June last year, has published its latest annual financial report, which covers the nine months to December 31 2020.
Sales revenue decreased from £26.2m in the 12-month period ending March 31 2020 to £10.4m in the nine-month period ending December 31 2020.
Profit declined over the same period from £8.3m to £1.9m. After tax, the company made a £1.8m loss.
The number of staff fell from 83 to 80.
The report also lists current risks to profitability that includes the impact of Brexit which it says has resulted in "greater economic uncertainty".
Read more:
- Harrogate Spring Water to submit fresh plan for Pinewoods bottling plant
- Harrogate council refuses to reveal how much income it receives from Harrogate Spring Water
Harrogate Spring Water marketing manager Nicky Cain told the Stray Ferret she expected to see improved results for 2021.
"We were one of the most hardest hit by the pandemic and people no longer being on the move.
"We are now seeing encouraging bounce-back with trade over the summer now back to pre-pandemic levels.
"During this massively challenging period, we’ve continued to support those sectors hardest hit. We have worked with the hospitality industry through supporting the Drinks Trust, and have supported the arts sector through our activation with The Royal Albert Hall and running our limited edition label competition.
"It’s also important to recognise that throughout this tough period we have continued to ringfence our guaranteed donation through our ethical water brand Thirsty Planet, to the charity Pump Aid, who have continued to deliver clean water projects in sub-Saharan Africa."
Parent company Danone also experienced a fall in revenue and profits, which it blamed on the pandemic, in 2020.
The company, which also owns Actimel, Alpro and Evian, saw revenue fall from £25.3bn in 2019 to £23.6bn.
The Pinewoods expansion
Meanwhile, Harrogate Spring Water is preparing to submit a new planning application to expand its bottling plant in the Pinewoods.
The company was granted outline planning permission to expand to the west of its existing site in 2016, which meant the principle of development had been established but the details had not been agreed.
The reserved matters application provoked a major backlash due to the loss of trees at Rotary Wood. In January this year, councillors on the planning committee voted overwhelmingly to reject it— against the wishes of council officers who had recommended approval.
The company said in July it was working on a completely new application and the 2016 application would be disregarded.
It has pledged to consult with the community before pursuing a formal planning application to the council.
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