REG - Rentokil Initial PLC - Q1 Trading Update

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RNS Number : 6531A  Rentokil Initial PLC  16 April 2026

 

 

16 April 2026

 

RENTOKIL INITIAL PLC - FIRST QUARTER TRADING UPDATE

 

Rentokil Initial plc ("the Group"), today issues a Trading Update for the
first three months of the 2026 financial year covering the period 1 January
2026 to 31 March 2026.

 

Mike Duffy, Chief Executive of Rentokil Initial plc, said:

 

"We have made a good start to the year in a seasonally quieter first quarter,
with continued momentum in North America and solid progress across our
International businesses.

 

"In my first four weeks as CEO, I have been impressed with the depth of
passion and pride that our people have in delivering exceptional customer
service, and I am excited by the opportunity to unlock the potential of the
Group.

 

"While geopolitical events, as previously noted, continue to create some
uncertainty, the progress we report today gives us confidence in delivering a
full year performance in line with market expectations."

 

Group

Group Revenue for the quarter was $1,677m, up 4.3%. Organic Revenue growth was
3.4%.

 

North America

Revenue for the quarter was $995m, up 4.5%.  Organic Revenue growth was
3.9%.

 

North America Pest Control Revenue growth was 4.7%.  Organic Revenue growth
was 4.1%.

●    Pest Control Services Organic Revenue growth was 2.8% (2.6% in Q425),
supported by robust price increases and good recovery of weather-related
disruption in late January across the US. Performance through the quarter
continued to benefit from our growth initiatives focused on enhancing
marketing investments and improving sales execution.

●   Business Services Organic Revenue growth was 12.7% (7.8% in Q425)
supported by strong pre-spring demand in product distribution, contribution
from 2025 new business wins in brand standards and high-value job work in lake
management.

 

Colleague retention increased to 82.6% (FY25: 82.2%) and customer retention
was broadly flat at 80.4% (FY25: 80.5%).

 

International (Group excluding North America)

 

Revenue for the quarter was $682m, up 4.1%.  Organic Revenue growth was 2.8%.

 

Good growth in Europe, Latin America and the UK & Sub-Saharan Africa was
driven by strong pricing and growth in volumes. Pacific and MENAT were a 60bps
headwind as the Pacific lapped strong comparatives in Rural and Trackspray,
and MENAT experienced disruption from the Middle East conflict.

Category Performance

 

Pest Control Organic Revenue growth was 3.7%, with 4.1% growth in North
America and 2.8% growth in International (3.0% excluding MENAT).

 

Hygiene & Wellbeing Organic Revenue grew by 2.1%, with 2.7% in
International and a decline of (2.7)% in North America, impacted by a later
phasing of construction timelines delaying Ambius jobbing revenue.

 

M&A

 

The Group's bolt-on M&A programme continued to create value with 9 deals,
delivering annualised revenue in the year before acquisition of $19m.

 

Conference Details

Today, 16 April, at 9:00am BST, Rentokil Initial Chief Financial Officer, Paul
Edgecliffe-Johnson will host a conference call for analysts and investors. A
replay will be available on the Company website
(https://www.rentokil-initial.com/investors.aspx) following the event.

 

To access the live audio webcast, register via the following link:

 

https://www.netroadshow.com/events/login/LE9zwo494GfiEWkBjeE6pecNQUQqzstvPAu
(https://www.netroadshow.com/events/login/LE9zwo494GfiEWkBjeE6pecNQUQqzstvPAu)

 

Alternatively, to join via teleconference, please register in advance using
the link below:

 

https://www.investis-live.com/rentokil/69ca82a0fed46a000febe69d/mfbe
(https://www.investis-live.com/rentokil/69ca82a0fed46a000febe69d/mfbe)

 

Enquiries:

Investors / Analysts: Heather Wood, Rentokil Initial plc, +44 7808 098793

 

Media: Malcolm Padley, Rentokil Initial plc, +44 7788 978199

 

Notes:

To help understand the underlying trading performance, unless otherwise
stated, all commentary and comparable analysis relates to the continuing
operations of the Group on a constant currency basis.

Organic Revenue growth represents the growth in Revenue at constant currency
excluding the effect of businesses acquired during the year. Acquired
businesses are included in organic measures in the year following acquisition,
and the comparative period is adjusted to include an estimated full year
performance for growth calculations (pro forma revenue).

North America includes Pest Control (Pest Control Services and Business
Services) and Hygiene & Wellbeing.

North America Pest Control Services is Pest Control excluding Business
Services.

 

Summary of Financial Performance

 

                                   Revenue
                                   Q1 2026  Q1 2025  Change (reported)  Change                Organic Revenue Growth

(constant currency)
%

                  %
                                   $m       $m       %
 North America                     995      951      4.6%               4.5%                  3.9%

 Pest Control                      965      921      4.8%               4.7%                  4.1%
 -       Pest Control Services     829      801      3.5%               3.5%                  2.8%
 -       Business Services         136      120      13.3%              12.7%                 12.7%
 Hygiene & Wellbeing               30       30       -                  (1.5)%                (2.7)%

 International                     682      605      12.7%              4.1%                  2.8%
 Pest Control                      405      359         12.8%           4.6%                  2.8%
 Hygiene & Wellbeing               277      246      12.6%              3.5%                  2.7%

 Total                             1,677    1,556    7.8%               4.3%                  3.4%

 

Category Performance

                          Revenue
                          Q1 2026  Q1 2025  Change (reported)  Change                Organic Revenue Growth

(constant currency)
%

                  %
                          $m       $m       %
 Pest Control             1,370    1,280    7.0%               4.6%                  3.7%
 Hygiene & Wellbeing      307      276      11.2%              3.0%                  2.1%
 Total                    1,677    1,556    7.8%               4.3%                  3.4%

 

Cautionary statement

In order 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 the Group's 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 due to a material incident,
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, cost increases 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, fraudulent activity 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 and the risk of related litigation;
termite damage claims and lawsuits related thereto and any 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, and any litigation (including class action claims and lawsuits)
related to such actual or perceived failures; the identification of material
weaknesses 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 the Group's 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.

The Company makes no guarantee that trends in the management of termite damage
claims will continue. Additionally, the Company makes no guarantee that its
operational improvement plans will mitigate against or reduce the number of
termite damage claims (litigated and non-litigated) against the Company nor
that these plans will reduce the ongoing cost to resolve such claims.

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 communication is intended to be a profit forecast and no
statement in this communication 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. These include revenue and measures presented at
actual exchange rates ("AER" - IFRS) and constant currency ("CER" - Non-IFRS).
Non-IFRS measures presented also include Organic Revenue Growth. 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.

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