Rentokil Initial (RTO) Trading Update summary

Revenue and growth performance

• Q1 2025 revenue rose 1.5% to $1.64 billion, with organic revenue growth at 1.8%, slightly impacted by one fewer trading day.

• International organic revenue grew 3.3%, led by strong performances in Europe (including LATAM), Asia & MENAT, and Pacific, while the UK lagged.

• North America organic revenue growth was 0.7%, with Pest Control at 0.5%, and overall revenue growth of 0.5%.

• Pest Control organic revenue grew 1.7% globally, driven by a 4.7% increase internationally; Hygiene & Wellbeing rose 1.6%, and France Workwear was up 4.4%.

• Digital inbound lead flow from paid activities returned to positive growth in March after declines in February.

Strategic initiatives and operational updates

• 36 satellite branches are now operational in North America, with more planned to boost organic growth.

• A door-to-door sales pilot is launching in 30 U.S. cities/branches, targeting specific customer segments and geographies.

• Technician sales lead participation improved by 9 percentage points to 60% in Q1.

• Additional incentives for salespeople are being introduced to improve contract sales.

• Five-star reviews for Terminix increased by 71%, enhancing online visibility.

Lead generation and marketing

• Paid search activities have shown lower acquisition costs and year-on-year improvements, but organic lead growth remains subdued.

• The company is focusing on improving organic lead generation through new branches and brand initiatives.