In the first quarter, Falck strengthened earnings levels and continued to develop new sustainable healthcare solutions and invest in extensive digitalisation. Falck expects to invest around DKK 225 million in digitalisation and digital healthcare solutions in 2024.
Falck launched strategic partnerships in Denmark and the US, which support the proliferation of new healthcare solutions that curb hospitalisations and promote the treatment of citizens in their own homes.
"We continue to deliver on our long-term strategy and achieved a satisfactory result with positive organic growth and a 21% increase in operating profit. The increase was primarily due to progress in our US business and increased earnings from healthcare solutions delivered to companies in Scandinavia. There is great potential in preventing hospitalisations – both for citizens and the healthcare system – and therefore I am pleased that we are now also in the air with healthcare solutions to support in-home patients in California and Denmark,"
says Jakob Riis, CEO of Falck.
The development was positive on the Scandinavian market for private healthcare subscriptions and corporate agreements. In Denmark, the number of private subscriptions surpassed 100,000, and larger corporate framework agreements were signed in Scandinavia on healthcare schemes for employees. In region Europe, however, revenue was affected by a reduced volume of ambulance contracts.
Falck had more ambulance transports in the US and made price adjustments, just as there was continued progress in Colombia with an increase in the number of healthcare subscriptions.
Falck maintains its expectations for the financial year 2024 to achieve organic growth at a low, single-digit level and an EBITA margin of 4-5%.
Financial highlights
- Revenue amounted to DKK 3,055 million compared to DKK 2,915 million in the year-ago quarter
- Operating profit before special items etc. (EBITA) amounted to DKK 143 million compared to DKK 118 million last year
- The EBITA margin was 4.7% compared to 4.0% last year
- Net profit for the period was DKK 28 million compared to DKK 35 million last year
- Free cash flow after tax was DKK 131 million compared to DKK 568 million last year
|
Million DKK (Falck total) |
Q1 2024 |
Q1 2023 |
2023 |
|
Turnover |
3.055 |
2.915 |
11,913 |
|
EBITA |
143 |
118 |
486 |
|
EBITA-margin (%) |
4,7 |
4,0 |
4,1 |
|
Net profit for the period |
28 |
35 |
334 |
|
Free cash flow |
131 |
568 |
279 |
|
Revenue growth, % (Falck total) |
Q1 2024 |
|
Organic (%) |
3,8 |
|
Acquisitions and divestments (%) |
0,4 |
|
Foreign exchange rates (%) |
0,6 |
|
Reported growth (%) |
4,8 |
