To date, the financial statement of ACE Logistics Group for 2021 has been audited and we can consider the year has been very successful. The consolidated turnover of ACE Group increased by 45% compared to 2020 and amounted to 56,5 million euros. Despite of the year full of many challenges, the total number of shipments increased about 10% and the Group’s net return was 6,1% and return on equity 48%. The number of employees increased to 183.
Road transport formed 53% of the turnover, air transport 19%, rail transport 16%, sea transport 10% and warehousing 1%. Proportionally, ACE Logistics Lithuania had the highest turnover with a 37% share, but ACE Logistics Estonia was only one percent lower than ACE Logistics Lithuania. ACE Logistics Latvia’s share was 19%, Belarus’s 5% and Ukraine’s 3%.
The main factor in the increase in sales revenue was the increased demand for various logistics services offered by the group’s companies, especially in intra-European road transport and combined transport solutions (rail + road) from Asia to the Baltics. Transport volumes for services provided to private individuals (B2C service) also increased significantly.
The year 2021 was characterized by the continuation of the Covid situation, which was also an impact to many areas in the economy, but it did not have a direct negative impact on our operations. In addition, the Brexit or the UK leaving from the European Union took place on 1 January 2021, which brought with it a number of challenges. In the logistics sector, the continuation of the pandemic mainly affected the problems in sea transport – the lack of containers, which was also the reason for the increase in waiting times and deliveries and the price increase. As an alternative, more air and rail services were used, as well as combined transport solutions (rail + road) increased.
On a positive note, ACE Logistics Ukraine ended its first full year of operations in profit. There are also important anniversaries to share, such as ACE Logistics Belarus turned 10 and ACE Logistics Lithuania turned 25. This year, 25th year of operation started in Latvia this year, and we are celebrating the 30th anniversary in Estonia. In the Latvian company, the manager changed in 2021, where the long-term and successful managing director Daina Zvirgzde had to step down for personal reasons, and the new manager Karlis Kasparans took over the position. In the beginning of 2022, there was also a change of manager in Estonia, where Katrin Tiidrus, the company’s long-term road freight manager, took over the duties of the managing director and the previous one, Andres Matkur, will continue as the managing director of the ACE Logistics Group.
In addition to previous, the company has continuously high points in customer satisfaction survey – our delivery times, price and service quality are considered especially important. A big thank you to all of our customers, thanks to whose feedback we are working hard and trying to be even better!
Each year, ACE Logistics considers it’s important to contribute back to the society. This year again, we supported financially the Union of Child Welfare. Their personal scholarship is awarded for the participation in olympiads, contests or sports competitions, as well as for the payment of tuition fees for hobbies, sports or language schools. A total of 93 youngsters applied for the scholarship this year, and 26 of them received a positive reply. With the help of the fund, more than 10000€ was distributed. You can read more here. We also continued to support sports and logistics education through various sponsorship projects, such as ACE Xdream and the Logistics Seminar organized by the logistics students.
The year 2022 has brought great changes to the world, which is why we cannot count on the stabilization of the logistics sector. Rather, it is necessary to learn to adapt to this challenging time. The world is constantly changing and the transport sector is being affected by rising fuel prices, the continuing crisis of sea containers, the shortage of labor in drivers, as well as changes resulting from the Ukrainian war (including rail transport safety, sanctions of goods and airspace closures).
Due to the war in Ukraine, ACE Logistics Ukraine was for a short period of time suspended, but our courageous Ukrainian colleagues wanted to continue the search for transport solutions as much as it was possible. We fully support them in this, and in addition, all employees of the company have retained their jobs and salaries.
The activities of the Belarusian subsidiary will be significantly affected this year by the international sanctions imposed on Russia and Belarus due to the war in Ukraine and the retaliatory sanctions of those countries, due to which trade with the West has significantly decreased. For this reason, their cargo volumes have decreased significantly and their geographical operating has changed. ACE Logistics has currently decided to continue operating the Belarusian subsidiary, but under significantly limited conditions. This includes the EU’s sanctions policy and the non-provision of services to sanctioned persons/companies and goods, and economic activities inside ACE Logistics Group is kept to a minimum.
ACE Logistics Group 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 primary 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 2021 here.
The beginning of 2022 has brought with it a lot of unexpected situations and uncertainties, but we still are going to continue with a positive attitude and focus on finding solutions. Changes in the global supply chains in general have created new opportunities in the logistics sector, to which the group’s companies have been able to adapt quickly and successfully and we plan to continuously work on it.
Thank you to all our employees, customers and partners for a great cooperation!
ACE Logistics Group