Strong annual results in Falck in 2021

Reported full-year revenue was DKK 15,173 million (DKK 12,348 million), EBITA was DKK 1,834 million (DKK 675 million) and the EBITA margin increased to 12.1% (5.5%).

President and CEO Jakob Riis said: “2021 was an exceptional year where Falck showed strong performance, both operationally and financially. During the year, we launched new healthcare services, won back important ambulance contracts in Denmark and started our ambulance service up in San Diego in the US. We have succeeded in further developing the core business and have delivered strong results despite difficult working conditions and increasing staff shortages in several countries.”

Delivering COVID-19 antigen testing services in Denmark stands as one of the largest and most demanding undertakings in Falck’s history. Widespread antigen testing has been a cornerstone of the Danish government’s COVID-19 strategy and instrumental in the fast reopening of society. Testing activities added DKK 3,456 million to revenue and DKK 1,229 million to EBITA in 2021.

Development in Falck’s core business

In 2021, Falck launched a range of new services aimed at private individuals in Denmark, offering prevention, diagnosis and treatment of health issues. The number of healthcare subscriptions increased in both Denmark and Latin America. Employee Healthcare increased its contract portfolio value by 10% by winning several new B2B contracts in Scandinavia. In Q3, Falck announced the strategically important acquisition of Norway’s Frisk Gruppen, which specialises in occupational healthcare. The acquisition has further strengthened Falck’s footprint as a significant player in employee healthcare across Scandinavia, targeting public institutions, insurance companies and private corporations.

At the same time, Falck won several large long-term ambulance contracts in Denmark and Sweden. With the long-term public tenders completed, 2021 brought clarity as to Falck’s position on the Danish ambulance market. Activity levels in Ambulance increased in Spain, Sweden, Germany and the US, where the large contract in San Diego started up in November. Falck’s Fire Services business won a number of contracts with large industrial corporations in Europe.

Solid financial platform

With a profit for the year of DKK 1,229 million, Falck now delivers a positive return to its owners.

In Q3 2021, Falck refinanced its long-term funding facilities, amounting to a total of DKK 3.7 billion (EUR 500 million). During the year, Falck also reduced its net interest-bearing debt from DKK 2.6 billion in 2020 to DKK 1.9 billion at the end of 2021. This provides a strong financial platform for Falck to deliver on its strategic objectives.

Jakob Riis: “We have delivered strong financial results and are well positioned to pursue significant opportunities in the healthcare business in the years to come. At the same time, we are executing on our strategy with the aim to develop Falck as an integrated healthcare services provider, supplementing the public healthcare system.”

Financial outlook for 2022

Higher activity levels in general, growth in the subscription portfolios and higher contract volume globally are expected to have a positive impact on Falck’s revenue and EBITA in 2022. However, this is expected to be offset by the effect of lower contract volume from Danish ambulance contracts and the divestment of the roadside assistance business outside of Denmark. In addition, the widespread staff shortage that has impacted the ambulance operations in both Europe and the US is expected to continue in 2022 negatively impacting earnings. Finally, the testing activities in Denmark are expected to continue throughout Q1 2022, which may provide a positive contribution to earnings.

Based on this, Falck expects a total revenue of DKK 11.8 to 12.3 billion and an EBITA of DKK 700-800 million for 2022.

Financial highlights of 2021 (compared to 2020):

• Revenue in the Falck Group increased to DKK 15,173 million (DKK 12,348 million). Excluding antigen testing activities, revenue was DKK 11,717 million.
• Operating profit before special items, etc., (EBITA) increased to DKK 1,834 million (DKK 675 million). The EBITA margin increased to 12.1% (5.5%). Excluding antigen testing activities, EBITA was DKK 605 million (DKK 608 million), and the EBITA margin was 5.2% (5.0%).
• Profit for the year amounted to DKK 1,229 million (negative DKK 178 million).
• Free cash flow after tax was DKK 1,888 million (DKK 1,410 million).

Download the annual report 2021 here

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