Press release

Falck generated strong revenue growth but lower earnings in Q1 2022

Falck’s core business increased revenue by 12.7% measured in fixed currencies, excluding the contribution from antigen testing, while EBITA was lower compared to the same quarter last year.

Apr 22, 2022 06:00 CET

DOWNLOAD THE REPORT

Falck reported revenue of DKK 3,700 million and EBITA of DKK 323 million in the first quarter of 2022. EBITA declined by DKK 16 million compared to the same period last year. The antigen testing activities, which are now closed and phased out, contributed DKK 617 million to revenue and DKK 200 million to EBITA.

Falck achieved a sales profit of DKK 697 million from the divestment of the Roadside Assistance business in Sweden, Norway, Finland, Estonia and Lithuania, completed during March 2022 with the approvals from the competition authorities and the Financial Supervisory Authority in Norway.

President and CEO Jakob Riis says: “We are pleased to report strong revenue growth in our core business. Growth has been achieved with the inclusion of Frisk Gruppen and organic growth across all business units and markets from a higher demand on our services. These results confirm the strategy Falck has embarked on”.

He further comments: “We experience a heated labour market with shortage of qualified labour, especially within our ambulance businesses in the US and Europe. This has led to higher operational costs, which is the main reason for our operational income to be lower than last year”.

Falck’s core business comprises the business areas Emergency Health and Safety and Healthcare.

In Emergency Health and Safety, revenue increased due to the new ambulance contract in San Diego, generally higher activity levels in the ambulance business in the US, and increased contract volumes in Ambulance Germany and Fire services. 

In Healthcare, revenue increased from the mentioned inclusion of Frisk Gruppen and stronger demand for pay-on-use services as well as a strengthened subscription portfolio of private and corporate customers.

Falck’s divestments of business activities outside the core areas have of course reduced revenue in the Portfolio segment compared to the same quarter last year. Even so, EBITA increased. In consequence of the divestment of Roadside Assistance, the revenue share from business activities which are not part of the core areas and without including antigen testing was reduced to 9% of total revenue compared to 15% last year.

For the full year, Falck still expects revenue of DKK 11.8-12.3 billion and EBITA of DKK 700-800 million with the prevailing risks.

Financial highlights of Q1 2022 (compared to Q1 2021):

  • Revenue for the Falck Group amounted to DKK 3,700 million (DKK 3,404 million). Antigen testing activities contributed DKK 617 million (DKK 446 million) to revenue.
  • EBITA amounted DKK 323 million (DKK 339 million). The EBITA margin decreased to 8.7% (10%). Antigen testing activities contributed DKK 200 million (DKK 127 million) to EBITA.
  • Profit for the period amounted to DKK 944 million (DKK 273 million) and was positively impacted by DKK 697 million from the divestment of the Roadside Assistance business.
  • Free cash flow after tax amounted to negative DKK 22 million (DKK 450 million).

DKK million (Falck total) 

Q1 2022 

Q1 2021 

2021 

Revenue

3,700 

3,404 

15,173

EBITA 

323 

339 

1,834

EBITA margin (%) 

8.7 

10.0 

12.1

Profit for the period

944

273

1,229

Free cash flow

(22)

450

1,888

 

During the quarter, Falck introduced new names for business areas and units to better reflect activities and strategic focus. It means that Emergency Health and Safety has replaced former Emergency Response, while Healthcare has replaced the previous name Direct Healthcare.

FALCK’S Q1 2022 REPORT CAN BE FOUND HERE

 

For further information, please contact Falck’s Communications Department on tel. +45 7022 0307 or comms@falck.com.

 

Business unit Corporate
Topic Financials

Explore further