Falck delivers strong Q2 results

All Falck’s business areas showed solid progress in Q2 2021. COVID-19 antigen testing in Denmark boosted revenue and earnings significantly. Adjusted for the impact of testing activities, EBITA increased by 56.1%.

President and CEO Jakob Riis said: “Falck has recovered strongly following a year defined by COVID-19. Our Q2 results were lifted significantly by the high number of antigen tests performed in Denmark in the second quarter, which have been essential for a faster reopening of the Danish society. This uplift in financial results will gradually come to an end as more and more people are vaccinated. In that context we’re very pleased to note that Falck’s underlying business is showing solid progress.”

In the Emergency Response business, which includes Ambulance and Fire Services, revenue increased primarily as a result of COVID-19 antigen testing and the start-up of the new ambulance contract in Görlitz, Germany. In the US, Falck reported an increase in the number of ambulance trips relative to the very low level recorded in Q2 last year.

In the Direct Healthcare business, which includes Employee Healthcare, Assistance and Community Healthcare, revenue increased in step with the reopening of societies after last year's lockdowns combined with an increase in the number of subscribers.

In the Portfolio business, which includes Falck’s non-core businesses, operating profit improved due to the divestment of loss-making businesses and the added focus on efficiency-enhancements in the remaining Portfolio entities.

Excluding the impact of testing activities, EBITA for the Falck Group amounted to DKK 190 million (DKK 122 million), and the EBITA margin increased to 6.5% (4.1%).

Financial highlights of Q2 2021 (compared to Q2 2020):

• Revenue in the Falck Group increased to DKK 4,686 million (DKK 2,948 million) mainly driven by antigen testing activities. Excluding these, revenue was DKK 2,950 million.
• Operating profit before special items etc. (EBITA) increased to DKK 907 million (DKK 122 million). The EBITA margin increased to 19.4% (4.1%). Excluding antigen testing activities, EBITA increased to DKK 190 million and the EBITA margin improved to 6.5%.
• Profit for the period was DKK 672 million (DKK -197 million).
• Free cash flow was DKK 1,310 million (DKK 686 million).

COVID-19 testing made Q2 an extraordinary quarter

In April, Falck won the public tender for antigen testing in Denmark based on the best combination of quality and price and thus continued to provide testing in three of the five Danish regions, at four airports and at the Danish-German border. Falck has on several occasions expanded its testing capacity which peaked at more than 200,000 tests per day in May. Since November 2020, Falck has hired more than 7,000 additional employees to perform a total of around 13 million tests, of which around 10 million took place in Q2 2021.

Jakob Riis: “The number of tests performed in Q2 was higher than expected. When we concluded the contract, we planned to close the test centres in June in line with the original vaccination plan, but when it was extended, demand for testing increased as did the efficiency rates at the test centres.

Setting up the extensive test capacity has been a large and demanding task, and it has had a significant impact on the business in both the first and the second quarters of the year. At the same time, we have implemented efficiency-enhancing measures across the organisation, bringing our business in good shape as we return to normal after COVID-19.”

Financial outlook for 2021

Based on the strong Q2 results as well as revised expectations to the rest of the year, Falck now expects full-year 2021 revenue of DKK 14.0-14.5 billion (previously DKK 13.0-14.0 billion) and an operating profit before special items etc. (EBITA) of DKK 1.5-1.6 billion (previously DKK 1.0-1.1 billion).

Falck’s Q2 2021 report is available at www.falck.com.

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