Harrogate Spring Water’s revenue increased last year but profits declined, according to accounts published this week.

The company, which is part of French multinational Danone, increased turnover from £34.7 million to £37 million in the year ending December 31, 2024.

But gross profit fell from £11.9 million to £10 million and pre-tax profit declined from £3 million to £84,302.

The annual report accompanying the figures said trading continued to grow in 2024 but there had been “ongoing cost prices pressures” associated with the introduction of the government's extended producer responsibility scheme, which requires companies to pay the full cost of managing packaging waste.

Staff costs increased from £3.57 million to £4.47 million but the average number of employees fell from 84 to 82.

The UK accounted for £33.5 million of the company’s £37 million turnover. Europe accounted for £2.7 million — up from £1.7 million in 2023 — and the rest of the world generated £770,000.

The accounts also reveal Harrogate Spring Water’s commercial and distribution activities were transferred to fellow Danone company Nutricia, which is Europe’s largest medical nutrition company, on May 1 this year. Nutricia’s brands include infant formula Aptamil.

The production, engineering, quality, procurement and administration activities of the business remain with Harrogate Spring Water Limited, which is based at Harlow Moor Road.

Harrogate Spring Water has applied to North Yorkshire Council to expand its Harrogate bottling plant. 

It already has outline planning permission but needs to secure reserved matters permission, which relates to issues such as appearance and landscaping, before it can proceed.

The council is expected to adjudicate on the matter this month.