Falck posted a positive financial result for the year 2023, which, in addition to meeting expectations, was supported by stable and broad-based organic growth.
Throughout 2023, the healthcare group managed to increase investments in digitalisation and business development to reach DKK 200 million. The investments were financed from operations and will continue through 2024, in which around DKK 225 million will be channelled into investments in digitalisation and digitalised healthcare solutions.
The annual result was marked by Falck recapturing momentum in the US market, where Falck's ambulance service with around 2,800 employees serves more than 8 million people on the American West Coast. Through a range of initiatives, the operation and staffing situation have improved, resulting in operating profits being doubled. In parallel, major contracts have been extended and entirely new healthcare-at-home initiatives are being rolled out.
"I look back on a good year, where we have delivered stable organic growth, while at the same time taking a number of strategic steps towards building a stronger, more innovative and digital Falck which is able to continue investing and scaling the healthcare solutions that are in high demand in the markets where we operate. The US ambulance market is both a large and important market for us, and therefore I am particularly proud of how we have succeeded in strengthening our operation and position in California,"
says Jakob Riis, CEO of Falck.
During 2023, Falck has increased its healthcare subscription base in Colombia with broad healthcare offerings and use of telemedicine as well as promoted new strategic healthcare-at-home initiatives in Poland, the US and Denmark, where acute situations are pre-empted through monitoring or treatment in one's own home. Such initiatives create more safety for citizens, curb emergency situations and reduce pressure on healthcare systems.
Falck delivered around 9.4 million services across preventive, acute and rehabilitative care within mental and physical health in 2023. Falck is committed to reducing its CO2 emissions and managed to reduce CO2 emissions by 5.1% in 2023.
In 2024, Falck expects to achieve low, single-digit organic growth and an EBITA margin of 4-5%.
Financial highlights
- Revenue amounted to DKK 11,913 million in 2023 compared to DKK 12,030 million the year before, excluding the public testing activities. Revenue declined due to for instance divestment of the ambulance service in the UK in 2022 as well as the impact of falling exchange rates on e.g. the US dollar.
- Operating profit before special items etc. (EBITA) amounted to DKK 486 million compared to DKK 517 million last year, excluding the public testing activities. EBITA in 2023 was lower than the previous year due to divestments, exchange rate developments and expensed investments.
- The result for the period was DKK 334 million compared to DKK 921 million last year, including the public testing activities.
- Free cash flow after tax was DKK 650 million compared to DKK -18 million last year, excluding the public testing activities.
|
Million DKK (Falck total) |
2023 |
2022 |
Q4 2023 |
Q4 2022 |
|
Revenue |
11,913 |
12,647 |
3,139 |
3,030 |
|
Excluding public testing activities |
11,913 |
12,030 |
3,139 |
3,030 |
|
EBITA |
486 |
717 |
125 |
118 |
|
Excluding public testing activities |
486 |
517 |
125 |
118 |
|
EBITA margin (%) |
4.1 |
5.7 |
4.0 |
3.9 |
|
Excluding public testing activities |
4.1 |
4.3 |
4.0 |
3.9 |
|
Net profit for the period |
334 |
921 |
237 |
(161) |
|
Free cash flow after tax |
650 |
(155) |
(209) |
(210) |
|
Excluding public testing activities |
650 |
(18) |
(209) |
(210) |
|
Revenue growth, % (Falck total), excluding public testing activities |
2023 |
|
Organic (%) |
3.9 |
|
Acquisitions and divestments (%) |
(2.7) |
|
Exchange rates (%) |
(2.2) |
|
Reported growth (%) |
(1.0) |
Falck's annual report can be found on www.falck.com.
