OVERVIEW OF RENTOKIL INITIAL Q3 PERFORMANCE (CER)
Q3 saw continued momentum in our businesses with Group Ongoing Revenue, excluding disinfection services, increasing by 11.7%. Organic Revenue2, supported by good price progression, was up 6.2%, while acquisition-led growth was 5.5%.
Ongoing Revenue in Pest Control increased by 12.6%, sustaining the growth rates delivered in H1. Organic Revenue was up 5.0%, Organic Revenue growth in North America Pest Control (up by 3.5%) got off to a slow start in the quarter against strong comparatives in the prior year (up by 9.8%). Despite the impacts of Hurricane Ian in the last week of September, the quarter finished well. Our Hygiene & Wellbeing business also performed well during the quarter, underpinned by good growth in core washrooms. Ongoing Revenue, excluding disinfection services, increasing by 7.9%, of which 7.3% was organic. Sales from disinfection services have reduced in line with our expectations at £3.6m, £8.6m lower than the same period last year. Due predominantly to post Covid recovery, Ongoing Revenue and Organic Revenue in France Workwear grew strongly by 17.1%.
Rentokil Initial plc (the "Company" or "Rentokil Initial") has continued to successfully manage inflationary pressures on its cost base through pricing and cost control actions, and maintains its full year outlook for the underlying business. Terminix delivered an excellent organic growth performance for the quarter comparable to Rentokil Initial. The expected impact of the Terminix transaction on revenues and profits are laid out below.
https://www.investegate.co.uk/rentokil- ... 00078145E/
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