Growing demand in France and Japan helped drive a 14% increase in sales at Johnstons of Elgin in 2014, the Moray-based cashmere and knitwear manufacturer’s latest accounts show.
The firm said a better sales mix also contributed to better profit margins as total sales lifted to £58.7million.
It celebrated a return to the black, thanks to underlying operating profits of £2.27million.
This was compared with losses of £380,000 in 2013.
But pre-tax profits fell to £1.83million last year, from £3.14million previously, as unfavourable exchange rates took a large bite out of the balance sheet.
Johnstons, which employs about 900 people at mills and visitor centres in Elgin and Hawick as well as shops in St Andrews and Nantucket in the US, said it focused more on its high-end cashmere and knitwear.
Chief executive Simon Cotton added: “We are pleased to be making steady progress in increasing the value of the product which we manufacture, enabling us to improve both revenue and profitability.
“Johnstons has built a 200-year history on creating added value for our customers and we are very proud to be continuing this tradition.
“Our partnerships with key customers in the luxury sector continue to go from strength to strength based on a common commitment to providing the highest quality in cashmere and other fine fibres.”
He added: “We continue to invest heavily in new equipment in both of our mills, combining fine hand skills with the latest technology wherever appropriate. Moving into 2015, our order book remains strong and we continue to invest significantly in our people, our plant and the quality of our product.”
The firm took direct control of a branded Johnstons of Elgin store in Nantucket, Massachusetts, earlier this year.
It said the move helped to maintain the momentum in retail growth from 2014, when sales were primarily driven by the company’s e-commerce operation.