Dear Subscribers,
We have a change of plans regarding tomorrow’s report. Initially, we intended to release our performance and valuation update on Rentokil Initial RTO 0.00%↑, but the company issued a new trading update today with the stock price falling 20% during the day.
We need to review the data and adjust our models before sharing a detailed analysis.
As we are currently on a business trip abroad, the updated analysis will be published next week.
In brief, here’s what has changed:
- North America's organic revenue growth for H2 was revised to around 1%, down from the previously anticipated 2-4% for the year.
- North America's adjusted operating profit for the full year is now expected at 17.2%, compared to 18.6% in H1. This drop is primarily due to cost overruns during the high season (July and August) and expected sales deleverage.
- As a result, the adjusted group operating margin has been revised to 15.5% for the full year, down from the 16.5% achieved in H1 and the previously expected marginal improvement over last year’s 16.7%.
If you're interested in the trading update, you can find the link here. In the meantime, feel free to revisit our February report to catch up before next week’s release.
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