The largest asset-based transportation company in Europe, Girteka, publishes its financial results for the year 2021. The company announces that, despite disruptions to the global supply chain, sales revenue did grow along with an increase in the demand for transport services. Although there was a rise in operating costs such as fuel prices, at a group level the transport business revenues grew more than 20% compared to the year before.
Generating Long Term Value for Stakeholders
Last year Girteka changed its organizational structure in preparation for further growth. The changes that have taken place in the group’s structure will ensure the sustainable development of the organization, with the management of transport companies now effectively under Girteka Holding, LLC.
Girteka Holding announces sales revenues in 2021 of €1,437 billion euros and delivered €77,9 million euros in net profit before tax. After dealing with COVID, Brexit and the knock-on disruption to the supply chain, Girteka found momentum as the market became more stable. The focus in 2021 has been on improving processes, the progress of the digitalization program, increasing its fleet of trucks and number of employees to be able to sustain growth and profitability.
“Girteka celebrated its 25th anniversary last year – starting from one truck and our first three employees, we have grown to become Europe’s leading asset-based transport company with the largest truck fleet in Europe. Last year we announced our new strategic dream – to become one of the TOP10 logistics companies in Europe and we had a year that has taken us closer towards our dream”, says Edvardas Liachovičius, Chief Executive Officer of Girteka.
Focus on Employees
Aiming to retain current team members and attract new ones, the company has invested a lot in employee development. The Drivers Academy continues to be a great source of pride for Girteka with over 60 000 trainings completed in 2021.
Girteka is working very hard in the area of employee relations, with 70% of current colleagues recommending to their friends and relatives to work at the company.
A lot of time was spent in 2021 by Girteka preparing for the EC regulatory changes coming in 2022 with the Mobility Package requirements. Girteka decided to expand its operation in Poznan, as a base close to Western Europe and the Nordics. Thermo-transit, the fully owned company of Girteka group, expanded capacity by opening new terminals near Oslo, Norway and Padborg, Denmark to provide better services for its customers as a result increasing both revenue and profitability.
As a responsible business Girteka is aware of its ongoing accountability for the social well-being of the population it serves as customers, colleagues, partners, and the community. Leading by example with its key road safety message, working alongside the Lithuanian Swimming Federation to draw attention to safety in the water and a continued focus on sustainability and customer centricity.
The Growing Costs Challenges
Like other trucking companies in 2021 Girteka saw an industry affected by the increase in total operating costs, driver shortages, inflation, and limited availability of new and used vehicles.
While the most obvious item whose price has risen over the past year is fuel other operating expenses have gone up as well, ranging from salaries, administrative costs, to prices for repairing trucks and trailers, all adding pressure on performance.
Girteka also sees the driver shortage across Europe, that showcased how crucial the profession is to the well-being of everyone in the continent, as our drivers were the ones that kept supply chains from being disrupted.
The Girteka intermodal rail network went from strength to strength, offering the possibility to deliver goods with trucks powered by alternative fossil free fuels to reduce CO2 emissions. Overall, the company more than doubled the amount of FTLs it carried in 2021 compared to 2020 covering 5% of our total kilometers via intermodal transportation, this saved 14,4 million kg of CO2 during the year.
Girteka’s goal is to carry 20% of long-distance kilometers by 2025 using our intermodal network.
Digital Transformation in Logistics
More than a year ago, Girteka started implementing an ambitious business development vision and aims to fully digitize its logistics business and all operations by 2025 using the SAP Business Technology Platform.
“We are on the path of digital transformation, and Girteka has chosen SAP as a partner for this journey. We aim to become a data-driven logistics company, and we believe that SAP offers the best tools to help us achieve this,” says Vytenis Šuklys, Chief Financial Officer at Girteka.