This announcement contains inside
information
28 January 2025
Trading Update (unaudited)
FY
2024 results in line with expectations; North America change of
management
Rentokil Initial plc (LON: RTO, NYSE:
RTO) ("the Company" or "the Group"), is pleased to
report that it traded in line with market expectations for the full
year ending 31 December 2024. The Company also announces
that Brad Paulsen will be leaving the Group in April 2025 to
pursue a new opportunity.
Trading
In Q4 2024, North America Organic
Revenue growth was 2.3% (Q3 2024: 1.4%), with Organic Revenue
growth in North America Pest Control Services of 1.5%, supported by
improved momentum in inbound lead flow from our marketing
initiatives. Group Organic Revenue growth in Q4 2024 was
3.0%.
FY 2024 North America Adjusted
Operating Margin, Group Adjusted Operating Margin and Group
Adjusted PBTA were also in line with prior guidance.
In North America, our integration is
continuing to plan. Q4 pilots of new satellite branches, new
technician and sales pay plans, and first re-routing and
re-branding activities were delivered to plan.
Further information on the Group
performance and outlook will be provided at the scheduled
Preliminary Results announcement on 6 March 2025.
North
America change of management
The Company also announces that Brad
Paulsen has decided to step down from his position as CEO of North
America. Brad will be leaving the Company to pursue a new
opportunity at a US publicly listed company in the building
materials sector. To ensure a smooth transition, Brad will remain
with the Company until April. The Company
wishes Brad well for the future and thanks him for his
contributions to the business.
The Company is delighted to confirm
that Alain Moffroid, Chief Commercial Officer, is being appointed
Interim North America CEO. Alain joined Rentokil Initial in 2013
from Unilever where he was VP Customer Development, covering Asia,
Pacific, Africa & Russia. After initially serving at Rentokil
Initial as Managing Director, Pacific he subsequently became
Managing Director, Europe in September 2019. He was appointed Chief
Commercial Officer in April 2024. He is a highly experienced
leader in the Company with extensive experience of both residential
and commercial pest control and is currently working closely with
the North American business on its customer experience and
retention, digital and innovation programmes. He will join the
North American business in the coming weeks.
For further information, please
contact:
Investors / Analysts: Peter Russell, Rentokil Initial plc, +44 7795
166 506
Media: Malcolm Padley, Rentokil
Initial plc, +44 7788 978 199
Cautionary statement
In order, among other things, to
utilise the 'safe harbour' provisions of the U.S. Private
Securities Litigation Reform Act of 1995 (the "PSLRA") and the
general doctrine of cautionary statements, Rentokil Initial plc
("the Company") is providing the following cautionary statement:
This communication contains forward-looking statements within the
meaning of the PSLRA. Forward looking statements can sometimes, but
not always, be identified by the use of forward-looking terms such
as "believes," "expects," "may," "will," "shall," "should,"
"would," "could," "potential," "seeks," "aims," "projects,"
"predicts," "is optimistic," "intends," "plans," "estimates,"
"targets," "anticipates," "continues" or other comparable terms or
negatives of these terms and include statements regarding Rentokil
Initial's intentions, beliefs or current expectations concerning,
amongst other things, the results of operations of the Company and
its consolidated entities ("Rentokil Initial" or "the Group),
financial condition, liquidity, prospects, growth, strategies and
the economic and business circumstances occurring from time to time
in the countries and markets in which Rentokil Initial operates.
Forward-looking statements are based upon current plans, estimates
and expectations that are subject to risks, uncertainties and
assumptions. Should one or more of these risks or uncertainties
materialise, or should underlying assumptions prove incorrect,
actual results may vary materially from those indicated or
anticipated by such forward-looking statements. The Company can
give no assurance that such plans, estimates or expectations will
be achieved and therefore, actual results may differ materially
from any plans, estimates or expectations in such forward-looking
statements. Important factors that could cause actual results to
differ materially from such plans, estimates or expectations
include: the Group's ability to integrate acquisitions
successfully, or any unexpected costs or liabilities from the
Group's disposals; difficulties in integrating, streamlining and
optimising the Group's IT systems, processes and technologies,
including artificial intelligence technologies; the Group's ability
to attract, retain and develop key personnel to lead the Group's
business; the availability of a suitably skilled and qualified
labour force to maintain the Group's business; cyber security
breaches, attacks and other similar incidents, as well as
disruptions or failures in the Group's IT systems or data security
procedures and those of its third-party service providers;
inflationary pressures, such as increases in wages, fuel prices and
other operating costs; weakening general economic conditions,
including changes in the global job market, or decreased consumer
confidence or spending levels especially as they may affect demand
from the Group's customers; the Group's ability to implement its
business strategies successfully, including achieving its growth
objectives; the Group's ability to retain existing customers and
attract new customers; the highly competitive nature of the Group's
industries; extraordinary events that impact the Group's ability to
service customers without interruption, including a loss of its
third-party distributors; the impact of environmental, social and
governance ("ESG") matters, including those related to climate
change and sustainability, on the Group's business, reputation,
results of operations, financial condition and/or prospects; supply
chain issues, which may result in product shortages or other
disruptions to the Group's business; the Group's ability to protect
its intellectual property and other proprietary rights that are
material to the Group's business; the Group's reliance on third
parties, including third-party vendors for business process
outsourcing initiatives, investment counterparties, and
franchisees, and the risk of any termination or disruption of such
relationships or counterparty default or litigation; any future
impairment charges, asset revaluations or downgrades; failure to
comply with the many laws and governmental regulations to which the
Group is subject or the implementation of any new or revised laws
or regulations that alter the environment in which the Group does
business, as well as the costs to the Group of complying with any
such changes; termite damage claims and lawsuits related thereto
and associated impacts on the termite provision; the Group's
ability to comply with safety, health and environmental policies,
laws and regulations, including laws pertaining to the use of
pesticides; any actual or perceived failure to comply with
stringent, complex and evolving laws, rules, regulations and
standards in many jurisdictions, as well as contractual
obligations, including data privacy and security; the
identification of a material weakness in the Group's internal
control over financial reporting within the meaning of Section 404
of the Sarbanes-Oxley Act; changes in tax laws and any
unanticipated tax liabilities; adverse credit and financial market
events and conditions, which could, among other things, impede
access to or increase the cost of financing; the restrictions and
limitations within the agreements and instruments governing our
indebtedness; a lowering or withdrawal of the ratings, outlook or
watch assigned to the Group's debt securities by rating agencies;
an increase in interest rates and the resulting increase in the
cost of servicing the Group's debt; and exchange rate fluctuations
and the impact on the Group's results or the foreign currency value
of the Company's ADSs and any dividends. The list of factors
presented here is representative and should not be considered to be
a complete statement of all potential risks and uncertainties.
Unlisted factors may present significant additional obstacles to
the realisation of forward-looking statements. The Company cautions
you not to place undue reliance on any of these forward-looking
statements as they are not guarantees of future performance or
outcomes and that actual performance and outcomes, including,
without limitation, the Group's actual results of operations,
financial condition and liquidity, and the development of new
markets or market segments in which the Group operates, may differ
materially from those made in or suggested by the forward-looking
statements contained in this communication. Except as required by
law, Rentokil Initial assumes no obligation to update or revise the
information contained herein, which speaks only as of the date
hereof. Additional information concerning these and other factors
can be found in Rentokil Initial's filings with the U.S. Securities
and Exchange Commission ("SEC"), which may be obtained free of
charge at the SEC's website, http:// www.sec.gov, and Rentokil
Initial's Annual Reports, which may be obtained free of charge from
the Rentokil Initial website, https://www.rentokil-initial.com. 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 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. Non-IFRS measures
presented include Organic Revenue Growth, Adjusted Operating Profit
and Adjusted PBTA. 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.
