Rentokil: The 40% that no one talks about

Research evidence excerpt

Rentokil: The 40% that no one talks about

29 June 2026

Will Kirkness

+44 20 7676 8355

European Business Services will.kirkness@bernsteinsg.com

Rentokil Initial Filippo Giardini

+44 20 7762 4723

Rating filippo.giardini@bernsteinsg.com

Outperform

Price Target

RTO.LN 565.00 GBp

This note builds on our previous work, “Revisiting the revenue revival” and “North America

Close Date 25 Jun 2026

Margin Analysis”. In this follow-up, we focus on the remaining 40% of the business, an area

RTO.LN Close Price (GBp) 435.20

often overlooked as near-term expectations remain centered on rehabilitating organic growth

Price Target (GBp) 565.00

in North America. New management opens the door to a refreshed International strategy,

Upside/(Downside) 30%

though targeted pruning of markets and activities looks more likely than a full-scale review.

52-Week Range 506.80/334.80

Within the segment, International Pest stands out with strong growth, healthy margins, and

EDME 1,580.77

limited M&A intensity, while Hygiene & Wellbeing delivers solid margins but slower growth.

FYE Dec

We conclude that the Pest Control sub-division could emerge as a key growth engine, Div Yield 2.1%

as supported by peer performance such as Anticimex and Ecolab. This will likely be driven Market Cap (GBP) (M) 10,885

by growth in high growth regions, notably APAC, where Rentokil maintains an established EV (GBp) (M) 18,320

distribution and strong customer presence; it is the #1 market player in China, India, and Performance YTD 1M 6M 12M

Indonesia. The Hygiene & Wellbeing sub-division will likely remain uneventful, delivering Absolute (%) (3.7) (7.3) (2.6) 22.5

GDP-like organic growth with stable margins. A future divestment of all or parts could be EDME (%) 7.5 2.0 8.0 17.6