To date, we have audited the 2020 financial statements of ACE Logistics Group and we can be satisfied with another year of growth. The consolidated turnover of the group increased 15% compared to 2019 and reached 39 million euros. Despite a difficult year, the total number of shipments also increased by 14% and the Group’s net profitability was 4.9% and return on equity 30%. The number of employees increased to 178.
As the largest investment, a new office, warehouse and terminal building of more than 6000 m2 was completed in Estonia in the spring of 2020. The capacity of the terminal has significantly increased compared to the old one and this provides an opportunity for more efficient handling of goods. There is still room on the property to expand the existing logistics center by 4,000 square meters. The total investment was 5 million euros.
The new coronavirus (COVID-19), which began to spread rapidly in early 2020 around the world, leading to the pandemic situation in many countries, also affected many companies and sectors. We had to adapt with the corona situation and therefore ACE group introduced, as a measurement during this period, the possibility to work from home, while at the same time creating working conditions for terminal and warehousing staff and couriers to minimize their contacts to bystanders. There was a lot of emphasis on personal protection and desinfection equipment. Thankfully, corona did not have a significant negative impact on the group’s results.
Despite the corona situation, we managed to successfully expand geographically and open a branch in Kiev, Ukraine. It was very difficult to set up and start a business abroad at the beginning of a pandemic, but since it was a long term strategic decision, there was no point in stopping the plans. The first year of the Ukrainian company was very successful and you can read more about it here.
The health crisis caused by Covid-19 did not remarkably influence the movement of goods in road transport. However, it had a notable impact on air freight and led to significant price increases. Due to the instability of air and sea transport, customers’ interest in railway solutions increased significantly as an alternative solution.
We value customers feedback and their satisfaction with us is. We are very pleased with the results of the satisfaction survey conducted in Estonia, Latvia, Lithuania, Belarus and Ukraine earlier this year. The satisfaction index for all five countries was 8.9 (on a 10-point scale) and the recommendation index for the countries as a whole was 80%. Our fast and always helpful couriers have also received a high rating in this year’s survey (9.3). We are grateful for all of the suggestions made, many of which were about making the e-ace environment even more customer-friendly. We continue with having major focus on the further development of digital solutions.
Social responsibility was in our hearts even in this difficult time of the corona. In Estonia, we once again financially supported the Union of Child Welfare. A personal scholarship is awarded for the participation in Olympiads, contests, or sports competitions, as well as for the payment of tuition fees for a hobby, sports or language school. We also continued to support sports and logistics education through various sponsorship projects.
The ACE Logistics Group currently operates in six countries: Estonia, Latvia, Lithuania, Belarus, Ukraine and Finland (JV). We offer air, sea, road and rail transport, as well as warehousing and customs clearance services based on the wishes and needs of our customers. The company’s main goal is to continuously create value by focusing on sustainable growth, profitability and return on equity.
You can get acquainted with the main financial indicators of ACE Logistics Group AS in 2020 here.
We are approaching 2021 with moderate optimism and hope for the continuation of positive economic results. Strong customer and partner relationships established in previous years provide a reason for this.
Thank you to all our employees, customers and partners and I wish everyone success in the future!
ACE Logistics Group AS