We have audited the financial indicators of the ACE Logistics Group for year 2019. We are very pleased with the results and the continuous growth. The consolidated turnover increased by 6% compared to the previous year and reached as much as 34 million euros. The total number of shipments increased by 7.5%. The number of employees increased to 165. At the same time, the ACE Logistics Group met its main strategic financial targets: a net return of 5.6% and a return on equity of 39%.
In 2019, we started several important projects, the largest of them was the start of the construction of a new site in Estonia. The new logistics center, located by Tartu Rd in Rae Parish, has over 6,000 square meters of office, warehouse and terminal space. The building was taken into use in this spring 2020. It was built taking the needs and specifics of our company into account. The capacity of the terminal has significantly increased compared to the old one and this provides an opportunity for more efficient handling of goods.
In 2019, we paid great attention to strengthening the road transport network. Thanks to the development of the route network in the Baltics and Germany, shipments from Estonia to several Central European countries now arrive one working day earlier. We also opened a regular morning linehaul to Finland, thanks to which the delivery speed of shipments to and from the Baltics improved.
In addition to the tighter transport schedule between Estonia and Finland, we signed a contract for the construction of a new logistics center in Kerava, Finland as well. This is the new logistics center of ACE Logistics’ and Dachser’s joint company Dachser Finland OY, which should be completed in August 2020.
In recent years, we have also paid great attention to developing the part and full load business. The service has become more important year by year, and provides an increasing share of the turnover of ACE Group companies in the form of a positive growth trend.
Last year customers’ interest in China’s New Silk Road, rail transport, began to grow rapidly. Rail transport from China is replacing the traditional air and sea transport solution more and more. The corona crisis and its exceptional disruptions in the air and maritime transport sectors have further increased interest in rail transport.
We also continued to develop digital solutions for the e-environment (e-ace) in 2019. For five years now, the digital environment has helped us to make communication with customers significantly more efficient. Customers can use the e-ace environment to calculate prices, place orders and track shipments. In addition to road transport field, the e-ace environment can now also be used to order air, sea and rail transport.
Customer feedback and satisfaction are very important to us. We are very pleased with the results of the satisfaction survey conducted in Estonia, Latvia, Lithuania, and Belarus earlier this year. The satisfaction index for the four countries was 9.1 (on a 10-point scale), and the recommended index for the countries as a whole was 81%. We are grateful for all the suggestions made, most of which were about making the e-ace environment even more customer-friendly.
We continue to have social responsibility issues in our hearts. We once again financially supported the Child Welfare Association Foundation. Their personal scholarship is awarded for participation in Olympiads, in contests, and in sports competitions. It can also be used for paying fees for hobbies, sports, or language schools. Many talented children come from big families with lots of children or financial difficulties, and without support it would be difficult for them to continue their journey in the world of sports or music. We very much hope that ACE’s contribution will help talented young people to become even better in their field, and that they will be able to introduce Estonia to other parts of the world through sports, music or art.
The ACE Logistics Group currently operates in six countries: Estonia, Latvia, Lithuania, Finland, Belarus, and Ukraine. We offer air, sea, road, and rail transport services based on the needs of our customers. The company’s main goal is to continuously create value by focusing on sustainable growth, profitability, and the return on equity.
You can see the main financial indicators of ACE Logistics Group AS for year 2019 here.
I would like to thank all our employees, customers, and partners, and wish everyone success in their field!
ACE Logistics Group AS