Rentokil Initial reports in-line FY 2024 results, management shift

Published 28/01/2025, 16:02
Rentokil Initial reports in-line FY 2024 results, management shift

Rentokil Initial (LON:RTO) plc (LON: RTO, NYSE: RTO), a global provider of commercial and residential services with a market capitalization of $12.2 billion, today announced that its financial results for the full year ending December 31, 2024, met market expectations.

According to InvestingPro analysis, the company maintains impressive gross profit margins of 82.5% and is currently trading below its Fair Value. Additionally, the company disclosed an upcoming change in its North American leadership.

The company’s fourth-quarter performance in North America showed organic revenue growth of 2.3%, bolstered by a 1.5% increase in North American Pest Control Services. This improvement was attributed to enhanced marketing efforts. Overall, the group’s organic revenue growth in Q4 2024 reached 3.0%. The company’s financial health is rated as GOOD by InvestingPro, which highlights its stable performance and low price volatility.

Rentokil Initial also confirmed that its North America Adjusted Operating Margin, Group Adjusted Operating Margin, and Group Adjusted Profit Before Tax and Amortization (PBTA) aligned with previous guidance. The integration efforts in North America are reportedly progressing as planned, with successful pilot programs for satellite branches and new pay plans for technicians and sales staff. The company will provide additional details on its performance and outlook at the Preliminary Results announcement scheduled for March 6, 2025.

In a significant management update, Brad Paulsen, CEO of North America, will leave the company in April 2025 to pursue a new opportunity in the building materials sector at a US publicly listed company.

Alain Moffroid, the current Chief Commercial Officer, will assume the role of Interim North America CEO. Moffroid, who joined Rentokil Initial in 2013 and has held various leadership positions, brings extensive experience in both residential and commercial pest control. He is expected to join the North American business in the coming weeks.

For comprehensive financial analysis and additional insights, investors can access more than 30 key metrics and exclusive ProTips through InvestingPro. Additional information can be found in Rentokil Initial’s filings with the U.S. Securities and Exchange Commission and on the company’s website.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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