Company: RKLIF
Filing Date: 2025-03-06
Form Type: 6-K
Source: 0001654954-25-002335
Chunk: 1

Company: RENTOKIL INITIAL PLC /FI
Filing Date: 2025-03-06
Form: 6-K
Chunk 1
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%) was held back by the performance in North America (Organic Revenue growth 1.5%).

“The Terminix integration is making good progress, with multiple important milestones achieved, but executing it has clearly impacted our North American business performance.

“The integration remains on track to be completed by the end of 2026. Colleague and Customer retention across our NA business saw encouraging improvements during 2024, and has also been trending positively at the newly integrated branches.

“Our sales and marketing initiatives to drive organic growth require further refinement to deliver the required improvements in overall lead generation and sales conversion, which will be a key focus in 2025. To address this, our revised branding strategy will see the national focus for the Rentokil and Terminix brands supplemented by additional prominence for our nine main regional brands. Alongside this, we will use insights from our promising satellite branch pilot to optimise the branch network size. We now expect that the end state branch network (including satellites) is likely to exceed 500 locations. Post integration we expect to generate both market beating growth and considerable cost efficiencies, with North American margins exceeding 20%.

“We continue to benefit from our diversified, global footprint and resilient business model, in addition to our sustained focus on customer service and investment in people, technology and innovation. Present in c.90 countries and with industry leading technology, we are a global leader in pest control and the largest pest control operator in the US, which has demonstrated attractive and sustained structural growth over time. With our enhanced scale, brand portfolio and service offering, we remain confident in our ability post the integration of Terminix to deliver sustained growth.

“We expect to achieve 2025 financial performance in line with market expectations.”

2024 Financial Highlights(Unless otherwise stated, all financials are presented at constant exchange rates).

| ● | Group Organic                                                      
 Revenue1Growth of 2.8%, with the International                     
 business up 4.7%.                                                  |
| ● | North America Organic                                              
 Revenue growth of 1.5%, with 1.5% in Pest                          
 Control.                                                           |
| ● | Group Adjusted                                                     
 Operating Margin of 15.4%2,                                        
 impacted by North America margin reduction to                      
 17.1%.                                                             |
| ● | Group Adjusted PBT at                                              
 AER of £703m, in line with revised                                 
 guidance.                                                          |
| ● | Net debt to EBITDA at                                              
 2.9x as at 31 December 2024.                                       |