Falck continues development of healthcare solutions

"Throughout the quarter, we have focused on initiating significant investments in digitalisation and development of healthcare solutions – both to establish smarter ways to deliver health and at the same time to build a more resilient business. We continue to deliver organic growth, which is driven by an increased demand for health services, and we saw that the number of healthcare subscriptions in Denmark and Colombia grew by 7 percent,"

says Jakob Riis, CEO of Falck.

Falck achieved organic growth of 1.3 percent on Group level, driven by increasing demand for healthcare services. Meanwhile, organic growth was negatively impacted by the ending of two ambulance contracts in Denmark and the US, respectively, in 2022. The financial result was as expected and in line with last year, when adjusted for divestments and ceased public testing activities in Denmark.

Partnerships and long-term investments

In recent years, Falck has simplified and streamlined its healthcare business. For the coming years, the stage has been set for a follow-up with significant investments in digitalisation, automation and development of innovative and sustainable healthcare solutions. This is done to strengthen the position as a strategic partner to the healthcare systems in Europe, the US and Latin America.

"As a partner to public healthcare systems in several countries, we have become involved in closer discussions with organisations and authorities about the growing pressure in public healthcare systems. We notice an enhanced willingness to find solutions so that more health can be delivered with scarce resources. This typically requires major structural changes, prevention of hospital readmissions and new ways to help more people before their vulnerable health situation becomes acute,"

says Jakob Riis.

In these discussions, Falck contributes with experience from several countries – for example from Colombia, where Falck has gained good experience with digital and post-hospital healthcare solutions that have strengthened the patient experience, reduced staff consumption and which can halve costs. This has been done through rethinking patient journeys and introducing technology that has enabled earlier intervention before emergencies occur and provided safe treatment courses in private homes.

Falck maintains its expectations for revenue of DKK 11.5-12.0 billion and operating profit before special items etc. (EBITA) of DKK 300-450 million for the financial year 2023. 

Financial highlights

• Revenue amounted to DKK 2,915 million compared to DKK 3,083 million last year, excluding public testing activities
• Operating profit before special items etc. (EBITA) amounted to DKK 118 million. EBITA amounted to DKK 123 million last year, excluding public testing activities
• The EBITA margin was 4.0% as last year, excluding public testing activities
• Net profit for the period was DKK 35 million compared to DKK 944 million last year
• Free cash flow after tax and excluding testing activities amounted to DKK 652 million against DKK 138 million last year
• In 2022, Falck divested roadside assistance outside Denmark and the patient transport business in the UK, reducing revenue by DKK 180 million, costs by DKK 168 million and EBITA by DKK 13 million in Q1 2023 compared to the same period last year.

Falck's quarterly report can be found on www.falck.com.