Rentokil Initial Plc (RTO.L): Organic growth trajectory reflecting steady improvement in execution; up to Buy

研报英文原文证据摘录

Rentokil Initial Plc (RTO.L): Organic growth trajectory reflecting steady improvement in execution; up to Buy

Goldman Sachs Rentokil Initial Plc (RTO.L)

system is a downside risk to our thesis, impacting the speed of re-rating towards a

closer multiple vs. Rollins.

n Slower-than-expected path to 20% EBITA margins in North America: Part of our

thesis also relies on the company’s ability to reach >20% EBITA margins in North

America by 2027. If branch strategy proves to be more expensive on P&L than

anticipated, it would represent a temporary headwind to margins.

n Negative weather impact: Structurally, weather trends will likely support c.6%

long-term market growth for Pest Control Services. However, short-term weather

events (e.g., freezing temperatures in the Eastern Seaboard in January/February

2026) could hamper commercial activity and delay revenues, representing a

headwind to the path to recovery for organic growth.

n Worse-than-expected macro conditions affecting consumer confidence: Even

though Pest Control Services don’t fall in the “discretionary services” category, we

note that low consumer confidence, according to market commentary, might lead

residential customers to delay non-urgent interventions to their houses that they

would have undertaken under more stable market conditions. Material macro

deterioration and lack of consumer confidence, therefore, could become a headwind

to growth on the residential side of the business.

Company Profile

Exhibit 24: Most of the Pest Control revenues are in North Exhibit 25: North America Pest Control revenues represent

America c.60% of group revenues

Pest Control vs. Hygiene & Wellbeing revenues by geography Group revenues by geography and division (FY25)

(FY25)

7,000 International

Hygiene and

6,000 Wellbeing,

38% 15%