- Rentokil’s North America revenue for the third quarter surpassed expectations, recording £875 million against an estimated £848.2 million.
- Total revenue amounted to £1.38 billion with sales at constant exchange rates increasing by 3.6%.
- Organic revenue growth recorded a rise of 2.6%.
- Europe revenue also exceeded expectations, reaching £293 million compared to an estimate of £284 million.
- UK & Sub-Saharan Africa revenue came in at £112 million, surpassing the estimate of £104 million.
- Revenue from Asia & MENAT was reported at £95 million, above the expected £92.2 million.
- In France, the workwear segment generated £61 million in revenue.
- Approximately $10 million of material and consumable costs are expected to decrease in Q4 2024 and into the following year.
- The full-year 2024 Group Adjusted PBTA is anticipated to be around £700 million.
- Merger and acquisition spending for the year is projected to be approximately £200 million.
- Rentokil is expanding efforts to enhance organic growth and actively managing to control cost overruns.
- Analyst ratings include 8 ‘buy’ recommendations, 11 ‘hold’, and 0 ‘sell’.
Rentokil Initial on Smartkarma
On Smartkarma, independent analyst Jesus Rodriguez Aguilar recently published a bullish research report titled “Trapping the Royal Rat-Catcher” on Rentokil Initial. The report highlights Philip Jansen’s rumored takeover bid for Rentokil Initial, a FTSE 100 pest control company, with private equity support. Jansen aims to improve Rentokil’s US operations and strengthen its ties with Terminix, potentially leading to market consolidation. Rentokil, known for its global leadership in pest control and hygiene services, is set to announce its H1 results on 25th July, showcasing a solid market position and brand recognition. Rodriguez Aguilar’s sentiment towards Rentokil Initial remains positive, anticipating favorable outcomes.
A look at Rentokil Initial Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Rentokil Initial, a company offering a wide range of facilities management and support services to various sectors, has been assessed using the Smartkarma Smart Scores. These scores provide an insight into different aspects of the company’s performance. With a Growth score of 4, Rentokil Initial is positioned with a positive outlook for expanding its operations and increasing its market presence over the long term. Despite having a slightly lower Resilience and Momentum score of 2 each, the company’s Value and Dividend scores are both rated at 3, indicating a moderate level of attractiveness in terms of valuation and dividend payouts.
Overall, Rentokil Initial seems to have a promising future ahead, especially in terms of growth potential. While there may be some challenges in terms of resilience and momentum, the company’s focus on growth can drive its success in the coming years. Investors may find Rentokil Initial a compelling choice, considering its balanced scores across different factors as indicated by the Smartkarma Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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