18 April 2024
RENTOKIL INITIAL PLC
FIRST QUARTER TRADING UPDATE
POSITIVE OVERALL START
Rentokil Initial plc ("the Group"), today issues a Trading Update for the first three months of the 2024 financial year covering the period 1 January 2024 to 31 March 2024.
|
AER1 |
CER |
||||
|
Q1 2024 £m |
Q1 2023 £m |
Change % |
Q1 2024 £m |
Q1 2023 £m |
Change % |
Revenue
|
1,270 |
1,259 |
0.9% |
1,294 |
1,233 |
4.9% |
Unless otherwise stated, figures related to the first quarter and are stated at constant exchange rates.
Andy Ransom, Chief Executive of Rentokil Initial plc, said:
"We have made a positive overall start to 2024. The Group has performed well and our RIGHT WAY 2 plan has delivered a stabilising performance in
"As the year proceeds, we look forward to continued progress, driven by our focus on
· Group Revenue up 4.9%, of which 3.1% was Organic Revenue growth. Continued pricing momentum.
·
- Organic Revenue in Pest Control overall up 1.5% and Pest Control services for commercial, residential and termite customers up 1.0%.
- Inbound digital lead flow performance was similar to Q4, with an improvement in lead quality, which had a positive impact on our sales conversion and return on marketing spend. We are encouraged by increased lead flows in the first two weeks of April.
- Technician sales leads participation rates improved by 8ppts from February to March.
- Customer retention was stable at 79.5%, and our pricing activities were successful in passing cost inflation to our customers.
-
- New 'Terminix It' multi-channel advertising and marketing campaign launched in late Q1 to build brand awareness and preference with key customer segments, and set to ramp up in the peak season.
· Good momentum in Organic Revenue growth was sustained in all other regions: +6.2% in
· Organic Revenue growth across all categories: Pest Control up 2.7%, Hygiene & Wellbeing up 3.8%, and France Workwear up 7.7%.
· Terminix integration plan saw further progress towards full branch integration starting mid-year.
- Completion of the merger of the Rentokil and Terminix legal entities into Rentokil North America, Inc. with all employees, customers and suppliers now contracted to the same legal entity. The legal combination is a critical enabler of future integration activities, which will allow for shared use of resources and the harmonisation of operating standards and pay plans.
- Go live of the new combined general ledger and internal reporting systems, facilitating integrated performance management, and continued progress on the development of the operational technology stack.
· The Group's bolt-on M&A programme continued to create value with 8 deals, delivering annualised revenue in the year before acquisition of
· The Group is on track to deliver on expectations for FY 2024, including 2-4% Organic Revenue growth in
Summary of financial performance (at CER)
Regional Performance
|
Revenue |
Organic Revenue growth
|
||
|
Q1 2024 £m |
Q1 2023 £m |
Change % |
Q1 2024 % |
|
|
|
|
|
|
761 |
743 |
2.3 |
1.5 |
Pest Control |
739 |
721 |
2.4 |
1.5 |
Hygiene & Wellbeing |
22 |
22 |
0.8 |
0.6 |
|
|
|
|
|
|
274 |
256 |
7.4 |
6.2 |
Pest Control |
130 |
120 |
8.6 |
6.5 |
Hygiene & Wellbeing |
87 |
83 |
5.5 |
4.7 |
France Workwear |
57 |
53 |
7.7 |
7.7 |
|
|
|
|
|
|
103 |
92 |
12.3 |
4.1 |
Pest Control |
50 |
48 |
4.1 |
4.1 |
Hygiene & Wellbeing |
53 |
44 |
21.2 |
4.1 |
|
|
|
|
|
|
86 |
81 |
5.7 |
4.3 |
Pest Control |
63 |
59 |
6.7 |
5.4 |
Hygiene & Wellbeing |
23 |
22 |
3.2 |
1.4 |
|
|
|
|
|
Pacific |
67 |
58 |
14.4 |
7.3 |
Pest Control |
34 |
28 |
20.1 |
9.9 |
Hygiene & Wellbeing |
33 |
30 |
9.1 |
5.0 |
|
|
|
|
|
Central |
3 |
3 |
(0.3) |
(0.3) |
Total at CER |
1,294 |
1,233 |
4.9 |
3.1 |
Total at AER |
1,270 |
1,259 |
0.9 |
|
Category Performance
|
Revenue |
Organic Revenue growth |
||
|
Q1 2024 £m |
Q1 2023 £m |
Change % |
Q1 2024 % |
|
|
|
|
|
Pest Control |
1,016 |
976 |
4.0 |
2.7 |
Hygiene & Wellbeing |
218 |
201 |
8.7 |
3.8 |
France Workwear |
57 |
53 |
7.7 |
7.7 |
Central |
3 |
3 |
(0.3) |
(0.3) |
Total at CER |
1,294 |
1,233 |
4.9 |
3.1 |
Total at AER |
1,270 |
1,259 |
0.9 |
|
The Company will host a webcast and teleconference at 9:30 a.m. BST to discuss the results. The audio webcast and accompanying presentation materials will be accessible via the IR section of the Company's website (www.rentokil-initial.com/investors). To ask questions, please join via the teleconference with conference ID 1097846 on one of the dial-in options below, with additional international access numbers found at https://registrations.events/directory/international/itfs.html. A replay will be available on the Company website after the call.
Rentokil Initial intends to publish its 2024 Interim Results on 25 July 2024.
Enquiries:
Investors / Analysts: Peter Russell, Rentokil Initial plc, + 44 7795 166506
Media: Malcolm Padley, Rentokil Initial plc, +44 7788 978199
Notes
1AER - actual exchange rates; CER - constant 2023 exchange rates
Cautionary statement
In order to utilise the 'safe harbour' provisions of the
Additional information concerning these and other factors can be found in Rentokil Initial's filings with the
No statement in this announcement is intended to be a profit forecast and no statement in this announcement should be interpreted to mean that earnings per share of Rentokil Initial for the current or future financial years would necessarily match or exceed the historical published earnings per share of Rentokil Initial.
This communication presents certain further non-IFRS measures, which should not be viewed in isolation as alternatives to the equivalent IFRS measure, rather they should be viewed as complements to, and read in conjunction with, the equivalent IFRS measure. These include revenue and measures presented at actual exchange rates ("AER" - IFRS) and constant full year 2023 exchange rates ("CER" - Non-IFRS). Non-IFRS measures presented also include Organic Revenue. Definitions for these measures can be found in the Group's 2023 Annual Report on Page 63. The Group's internal strategic planning process is also based on these measures, and they are used for incentive purposes. These measures may not be calculated in the same way as similarly named measures reported by other companies.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.