Rentokil Initial Announces First Half Earnings

LONDON - On July 27, Rentokil announced 2023 interim results. The company reported organic revenue growth of 5.9 percent and excellent momentum in bolt-on M&A, with increased spend expectation for full year.

Other highlights pertinent to Rentokil’s North America business included:

• Organic revenue growth of 4.1 percent in North America, achieved alongside the start of the integration pilot program of 64 branches
• Organic revenue growth of 4.8 percent in North American Pest Control services despite lower industry-wide flow from residential and termite customers
• Terminix colleague retention up 3.7 percentage points to 67.7 percent
• The purchase of six businesses with combined annual revenues of $40.6 million (£37m).

“The group enjoyed growth in every region and continued to benefit from effective pricing to manage inflationary costs. Revenue growth was further supported by another excellent period of M&A with 24 high-quality businesses acquired for a total consideration of £202m. I am especially pleased with our progress in integrating Terminix. We are seeing clear evidence of density benefits with the start of the pilot program and we remain firmly on track to deliver synergies. We start the second half of the year with continued confidence in our plans, both operational and strategic.”