Company: RKLIF
Filing Date: 2025-03-06
Form Type: 6-K
Source: 0001654954-25-002335
Chunk: 12

Company: RENTOKIL INITIAL PLC /FI
Filing Date: 2025-03-06
Form: 6-K
Chunk 12
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 Operating Margin was down by 30bps to 19.6%. In Europe, margin was stable, however there was a margin reduction in LATAM, where adverse weather impacted the shipping fumigation business. Operating Profit reduced by 6.2% to £170m at AER. Customer retention has remained strong at 88.3% (FY 23: 88.4%.) A focus on sales retention, including recruitment, onboarding and early days retention led to best-in-class colleague retention rates of 90.4% (FY 23: 90.4%).

In Europe and LATAM, 12 business acquisitions (9 in Europe and 3 in LATAM) were completed in total with revenues of £20m in the year prior to purchase.

UK & Sub-Saharan Africa

|                    |  2024 
   AER 
    £m | AER    
 Growth |  2024 
   CER 
    £m | CER    
 Growth | Organic 
 Growth  |
| Revenue            |   435 | 11.5%  |   437 | 12.0%  | 4.3%    |
| Operating          
 Profit             |    99 | 17.8%  |   100 | 18.2%  |         |
| Adjusted Operating 
 Profit             |   100 | 6.7%   |   101 | 7.0%   |         |
| Adjusted Operating 
 Margin             | 23.1% | -1.0%  | 23.0% | -1.1%  |         |

| Organic            
 Growth             | Q1   | Q2   | Q3   | Q4   | Full 
 Year |
| UK &               
 Sub-Saharan Africa | 4.1% | 6.1% | 4.2% | 2.9% | 4.3% |

Revenue for the region increased by 12.0% (4.3% Organic), with Pest Control Revenue growth of 5.5% and Hygiene & Wellbeing Revenue growth of 18.5%.

Regional Adjusted Operating Profit increased by 7.0% to £101m. Operating Profit was up 17.8% to £99m at AER. Adjusted Operating Margin decreased by 110bps to 23.0%, impacted largely by the acquisition of the lower margin specialist hygiene company DCUK. The region