President and CEO Jakob Riis says: “The organic growth was achieved across Falck's business areas and markets, and thus we have had progress for our underlying business. However, significant increases in fuel prices of 40-50% since last year and a continued challenge in staffing our ambulances in the US and Europe caused increased operating costs".
Falck realised revenue of DKK 2,974 million and operating profit before special items (EBITA) of DKK 134 million in Q2 2022. Revenue increased by DKK 24 million and operating profit (EBITA) decreased by DKK 56 million in Q2 2022 compared to the same quarter last year, when testing activities last year are left out.
It was the acquisition of Frisk Gruppen in 2021 and the start-up of a major ambulance contract in San Diego that contributed the most to the revenue growth, but Falck was also helped by exchange rate appreciations. It also appears from the interim report that the divestment of roadside services outside of Denmark and other activities reduced revenue by DKK 286 million compared to the same quarter last year.
EBITA for Q2 2022 decreased from last year due to higher operating costs. Against this background, Falck has revised its outlook for EBITA for the financial year 2022 to DKK 600-700 million compared to DKK 700-800 million previously. At the same time, the revenue outlook is revised upwards to DKK 12.0-12.5 billion compared to DKK 11.8-12.3 billion previously in the light of the business development in the first half of 2022 and recent exchange rate developments.
Falck will continue to deliver on the strategy and invest in digitalisation and business development to strengthen its market position as an integrated healthcare provider.
The development in Falck's business areas
Falck operates three business areas, where the core business includes "Emergency Health and Safety" and "Healthcare", while non-core activities are handled in the "Portfolio" area.
In Emergency Health and Safety, which includes the ambulance and fire business areas, revenue increased due to the mentioned ambulance contract in San Diego as well as a higher level of activity overall for both the ambulance and fire business. This compensated for the lower volume of ambulance contracts in Denmark.
In Healthcare, which among other things provides health subscriptions and treatments, revenue in Q2 2022 increased from last year. This was due to the acquisition of the Frisk Group and larger sales of various services. In Colombia, there was a noticeable growth in the number of subscribers using online doctoral assistance.
In Portfolio, there was a turnover of DKK 189 million, which with the planned divestments was reduced to 6% of total revenue compared to 10% last year.
|
DKK million (Falck total) |
Q2 2022 |
Q2 2021 |
H1 2022 |
H1 2021 |
2021 |
|
Revenue |
2,974 |
4,686 |
6,674 |
8,090 |
15,173 |
|
- Excl. COVID-19 testing activities |
2,974 |
2,950 |
6,057 |
5,908 |
11,717 |
|
EBITA |
134 |
907 |
457 |
1,247 |
1,834 |
|
- Excl. COVID-19 testing activities |
134 |
190 |
257 |
403 |
605 |
|
EBITA margin (%) |
4.5 |
19.4 |
6.8 |
15.4 |
12.1 |
|
Profit for the period |
62 |
672 |
1,005 |
945 |
1,229 |
|
Free Cash Flow |
32 |
1,310 |
10 |
1,760 |
1,888 |
|
Revenue growth, % (Falck total) |
Q2 2022 |
|
Organic (%) |
4.0 |
|
Acquisitions / divestments (%) |
(5.2) |
|
Foreign exchange rates (%) |
2.0 |
|
Reported growth (%) |
0.8 |
For further information, please contact Falck’s Communications Department on tel. +45 7022 0307 or comms@falck.com.
