Rentokil Initial FY22 Profit Down; Lifts Dividend, Medium Term View

Pest control firm Rentokil Initial Plc. (RTOKY.PK,RTO.L) reported Thursday that its fiscal year 2022 profit before tax fell 9.1 percent to 296 million pounds from last year’s 325 million pounds.

Earnings per share were 11.57 pence, down 18.3 percent from 14.16 pence a year ago.

Adjusted profit before tax was 532 million pounds, compared to 416 million pounds last year. Adjusted earnings per share were 21.22 pence, compared to prior year’s 17.99 pence.

Revenue for the year climbed 25.6 percent to 3.71 billion pounds from 2.96 billion pounds a year ago. Revenues grew 19.1 percent at constant currency rates.

Further, the Board is recommending a final dividend in respect of 2022 of 5.15p per share, payable to shareholders on the register at the close of business on April 11, to be paid on May 17.

This equates to a full-year dividend of 7.55p per share, an increase of 18.2 percent compared to 2021.

Looking ahead for fiscal 2023, Rentokil Initial projects group adjusted operating margin to increase to around 16.5 percent and North America adjusted operating margin to around 19.5 percent.

Further, the company increased medium term guidance for organic revenue growth to at least 5.0 percent from previously expected 4.0 percent-5.0 percent. The revision reflects ongoing operational and strategic plans, combined with the benefits from the acquisition and integration of Terminix.

In fiscal 2025, the company expects to deliver a group adjusted operating margin of greater than 19.0 percent.

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