By now, the 2023 financial statements of ACE Logistics Group have been audited and published. The past year’s results were affected by the recession that impacted the logistics sector with its influence visible across the group. The consolidated turnover decreased by 25% and was 45,5 million euros. The total number of shipments decreased by 2%, the net profitability of the group was 4,5% and the return on equity was 25%. The number of employees decreased to 187, which is 10 people fewer compared to last year.
Road transport was proportionally 70% of the turnover, air transport 16%, sea transport 8%, rail transport 5% and warehousing 1%. Proportionally, ACE Estonia made the most turnover with a share of 43%, followed by ACE Lithuania with 32%. ACE Latvia accounted with 23% and ACE Ukraine with 2%.
The main factor for the changes in sales revenue was complicate market situation: previously stable demand has decreased in major export markets; supply from manufacturing industries has declined, similar to traffic in local network areas. At the same time, competition for this decreasing volume of goods has continued to grow, as well as base costs.
In road transport, there was a drop in transport prices, linked to the decrease in demand and the price of fuel. In air transport, the past year can be considered stable regarding prices, delivery times and availability of cargo space. The prices of sea transport have noticeably decreased during the year and reached its bottom during Autumn. And compared to last year, rail transport has received improvements both in traffic volume and the stability of the service.
Despite the changes in economic conditions and the conducts of competition becoming more difficult, the companies in ACE Logistics Group are optimistic about the future. In 2023, ACE Group updated its strategy, with the goal to incorporate ESG principles. Among other changes, ACE Latvia has moved to a new and modern logistics centre near Riga Airport and in Lithuania the construction of a brand-new logistics centre to Kaunas will commence this year.
In the face of these difficult times, ACE Logistics has continued its activities in Ukraine. Despite the ongoing war, we have opened another office in Lviv, in addition to the existing office in Kyiv.
We are especially glad that, despite the decreasing traffic volumes and a complicated year, the customer satisfaction ratings were at an all-time high with an exceptional recommendation index of 85%. We would like to thank all our customers, whose feedback helps us to grow and improve!
Traditionally, ACE Estonia has continued to support the education of youth by supporting gifted young people via Estonian Union for Child Welfare, supporting logistics education via Logistics Seminar and was the main sponsor for the Peetri 5-km charity run.
ACE Logistics Group operates in five countries: Estonia, Latvia, Lithuania, Finland and Ukraine. We offer air, sea, road and rail transport, as well as warehousing and customs clearance services based on need of our customers. The company’s main goal is continuous value creation with a focus on sustainable growth, profitability and return on equity. You can find main financial indicators of ACE Logistics Group AS here.
We thank all our employees, customers and partners for their continuous cooperation!
ACE Logistics Group AS
