Rentokil Reports 3.1% Revenue Growth Amid Strategic Initiatives

Rentokil, a global leader in pest control and hygiene services, reported a 3.1% increase in revenue to $3.364 billion for H1 2025. The company achieved a 31.2% increase in free cash flow and maintained its dividend per share. Rentokil is focusing on organic growth, integrating acquired businesses, and expanding its satellite branches to improve data analytics for targeted marketing. The company expects to meet market expectations for FY 2025.

Rentokil Initial plc (LON: RTO), a global leader in pest control and hygiene services, has reported a strong set of first-half 2025 financial results, with revenue up 3.1% to $3.364 billion. The company's free cash flow increased by 31.2% to $444 million, while it maintained its dividend per share at 4.15 cents. Rentokil's performance reflects its focus on organic growth, integration of acquired businesses, and expansion of satellite branches to enhance data analytics for targeted marketing [1].

The company's revenue growth was driven by a 5.1% increase in its International business, with North America contributing 1.1% and International markets 2.7% to organic growth [1]. Rentokil's free cash flow conversion rate of 93% significantly exceeded its guidance of 80%, demonstrating strong cash flow performance [1].

Rentokil's Chief Executive, Andy Ransom, commented on the results, stating, "We delivered a solid first half performance, in line with expectations, with Revenue growth of 3.1% and Adjusted Group Profit before tax (including discontinued operations) of $444m." The company's outlook for the remainder of 2025 remains positive, with management expecting to deliver full-year financial results in line with market expectations [1].

Rentokil's commitment to innovation and technology is evident through its continued investments in solutions like PestConnect. The company rolled out an additional 75,000 units of PestConnect in H1 2024, bringing the total to 440,000 units in operation [1]. The launch of Radar X and AI smart camera technology for rodent identification further demonstrates Rentokil's focus on sustainable and technologically advanced pest control solutions [1].

Rentokil shares are up 11% to 384.40 pence on Thursday morning in London, the biggest FTSE 100 index gainer [2]. The company kept its 2025 guidance unchanged, with pretax profit at $216 million in the first half of 2025, down 27% from $294 million a year before [2]. Revenue rose by 3.0% to $3.36 billion from $3.27 billion, but operating expenses increased by 5.8% to $3.02 billion from $2.86 billion [2].

Analysts at Peel Hunt remain optimistic about Rentokil's prospects, keeping their 2025 estimates unchanged following the results. The company's North American business is showing early signs of improvement, which analysts believe compensates for near-term integration and growth risks [2].

References:
[1] https://www.asktraders.com/analysis/rentokil-shares-rto-add-11-push-through-380p-resistance-on-solid-h1-growth/
[2] https://www.marketscreener.com/news/rentokil-initial-shares-up-as-north-america-business-starts-turnaround-ce7c5fddd98ef422