Company: RKLIF
Filing Date: 2025-07-31
Form Type: 6-K
Source: 0001654954-25-008672
Chunk: 11

Company: RENTOKIL INITIAL PLC /FI
Filing Date: 2025-07-31
Form: 6-K
Chunk 11
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 at a CAGR of approximately 4%, driven by macro factors including the needs of an ageing population, the rise of urban populations and middle classes, and increasing hygiene expectations.

H1 2025

In H1 25, Hygiene & Wellbeing Revenue increased by 4.3% (0.9% Organic) to $566m, driven principally by increased pricing. Within Europe and LATAM revenue grew organically by 2.6% led equally by Core Hygiene and Enhanced Environments.

Within the UK and Sub-Saharan Africa region, a more challenging environment led to Organic Revenue decrease of 1.6%, while in our Pacific region market conditions remain challenging, with heightened price competition and lower customer retention resulting in low contract revenue growth in H1.

Adjusted operating profit increased by 5.0%, broadly in line with revenue growth as the pricing benefit and contribution from acquisitions more than offset the impact of cost inflation. Adjusted operating profit margins remained flat as pricing and tight cost control mitigated cost inflation.

We acquired two Hygiene and Wellbeing companies with revenues of c.$4m in the year prior to purchase.

Operational excellence

The Hygiene & Wellbeing business continues to focus on operational excellence, product development, disciplined sales activity and dedicated Hygiene digital marketing. It has shared overheads with Pest Control and areas of operational efficiency including density (route and product), improved colleague retention, deploying technology, and procurement - materials and product costs.

#### Disposal of France Workwear
On the 28 May 2025, we announced our agreement with H.I.G Capital for the intended sale of France Workwear which values France Workwear at a gross enterprise value of approximately €410m (c.$465m) on a cash-free debt-free basis including an earn-out mechanism with a maximum value of €30m (c.$34m) linked to the performance of the business in 2026. Total net cash proceeds are expected to be approximately €370m (c.$420m), subject to customary closing adjustments and the final earn-out outcome. Completion is expected to occur in late Q3 / early Q4 25. The business has been accounted for as a discontinued operation since 31 May 2025. In FY 24, France Workwear, including flat linen textile and clean room business, generated Revenue of $324m, Adjusted Operating Profit of $57m and had associated capital expenditure of $93m.

#### Good contributions from bolt-on M&A
In H1, we acquired