Rentokil Initial plc (RTO) Q2 2025 Earnings Call

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Replay transcript excerpt

WEBVTT 00:00:00.031 -- 00:00:05.017 Good morning ladies and gentlemen and thank you all for joining us today online. 00:00:05.017 -- 00:00:09.983 In a few moments Paul will provide you with details of our financial and regional performance 00:00:09.983 -- 00:00:15.670 for the six months ended 30th of June. I'll then come back to provide a brief update 00:00:15.670 -- 00:00:20.717 on our markets and businesses before we focus on North America and then take 00:00:20.717 -- 00:00:26.094 any questions. Please do note that to ask a question today, you will 00:00:26.094 -- 00:00:31.386 need to dial the separate conference call number shown on the right hand side of this 00:00:31.386 -- 00:00:35.716 chart. Details are also in today's R&S. 00:00:35.716 -- 00:00:40.328 So let me just start with a high level summary of the first half. 00:00:40.328 -- 00:00:45.636 Our performance was in line with expectations, with revenues at a group level increasing 00:00:45.636 -- 00:00:47.976 by 3.1% to $3.36 00:00:49.181 -- 00:00:54.188 billion, and with organic growth of 1.6%. Our 00:00:54.188 -- 00:00:59.736 international region delivered organic growth of 2.7%, and in North America, 00:00:59.736 -- 00:01:03.241 organic growth was 1.1%, increasing 00:01:03.241 -- 00:01:09.725 from 0.7% in the first quarter to 1.4% in the second. 00:01:09.725 -- 00:01:11.887 We delivered group-adjusted 00:01:11.887 -- 00:01:16.972 PBT of $418 million and a group operating margin of 00:01:16.972 -- 00:01:19.232 15.2%, 120 00:01:19.855 -- 00:01:25.140 basis points lower than in the same period last year, reflecting the anticipated 00:01:25.140 -- 00:01:28.464 year-on-year reduction in North America. 00:01:28.464 -- 00:01:33.529 Cash flow conversion was healthy and the divestment of our French workwear opera...