Earnings release
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Rentokil Initial 21 October 2021 ( £ m ) Ongoing Revenue¹ Revenue Excluding Disinfection Ongoing Revenue¹ Revenue RENTOKIL INITIAL PLC ( RTO ) - THIRD QUARTER TRADING UPDATE Strong momentum across our core businesses in Q3 , continued good execution of M & A Q3 2021 AER 761.3 761.9 750.2 750.8 Growth M & A AER 0.9 % 0.5 % 10.2 % 9.7 % CER 4.8 % 4.4 % 14.5 % 14.0 % Overview of Q3 performance ( at CER ) Q3 saw continued strong momentum in our core businesses with Group Ongoing Revenue , excluding disinfection services , growing by 14.5 % , of which 6.7 % was Organic² and 7.8 % was from acquisitions . Pest Control delivered an excellent performance overall during the period . Despite our Australian , New Zealand , Malaysian and Indonesian operations being materially impacted by lockdowns in Q3 , the category grew Ongoing Revenues by 18.3 % , of which 7.5 % was Organic . Ongoing Revenue in our Growth and Emerging markets grew by 18.7 % and 15.6 % respectively . In our North America business , a higher number of colleagues either off work with COVID - 19 or self - isolating contributed to some labour shortages in the quarter . Despite this , our Pest Control business in North America continued to demonstrate very strong momentum , growing revenues by 24.6 % , 10.1 % Organic . Our Core Hygiene business , excluding disinfection , delivered a 6.4 % increase in Ongoing Revenue ( 4.7 % Organic ) , reflecting good performances in the UK , Europe and Latin America but held back , as with Pest Control , by significant challenges associated with lockdowns and movement restrictions in Australia , New Zealand , Indonesia and Malaysia . Sales from disinfection services have tapered in line with our expectations at £ 11.4m ( Q1 : £ 75.7m , Q2 : £ 22.6m ) , a decline of £ 62.1m on this time last year . We are maintaining our guidance for disinfection revenues in H2 to be within the range of £ 10m to £ 20m . Ongoing Revenue in our Protect & Enhance category grew by 6.2 % ( 5.5 % Organic ) , reflecting further recovery in our France Workwear , Ambius , UK Property Care and Dental Hygiene services businesses . New category structure - Hygiene & Wellbeing At our Capital Markets Day on 28 September , we announced that in response to the increasing importance of hygiene and wellbeing services , we are expanding our Hygiene category with effect from 1 January 2022. The enlarged category , called Hygiene & Wellbeing , will comprise our current Hygiene operations together with our Ambius , Dental Hygiene and Cleanroom services operations , previously part of our Protect & Enhance category . Adopting the new category structure in Q3 would give organic growth in Hygiene & Wellbeing of 6.6 % . We completed nine acquisitions in Q3 : seven in Pest Control ; one in Hygiene ; and the previously announced transaction with Boecker , which completed on 3 August and which offers both Pest Control and Hygiene services . As a result , we have acquired businesses with operations in Australia , Chile , Colombia , Guadeloupe , Lebanon , Saudi Arabia , United Arab Emirates and the US , as well as interests in affiliated businesses in Kuwait , Qatar and Nigeria . Together , these have combined annualised revenues in the year prior to acquisition of c . £ 48m . Q2's excellent momentum has been maintained in Q3 and also into Q4 , and our anticipated full year expenditure on M & A remains in the region of at least £ 450m to £ 500m , as previously guided . Commenting on today's announcement Andy Ransom , Chief Executive , said : " We have delivered a strong performance from our core businesses in the quarter and are confident of sustaining this momentum for the remainder of the year . Assuming no further significant deterioration in trading conditions arising from the pandemic , our performance in Q3 - combined with further progress in our value - creating M & A programme - means we remain on track to deliver a full year performance in line with the guidance given at our interim results in July . "