LONDON (dpa-AFX) - Rentokil Initial (RTO.L, RTOKY.PK), a British commercial pest control services company, on Thursday reported that its third-quarter revenue was 1.382 billion pounds, same as last year. At constant exchange rates, revenues grew 3.6 percent. Further, the company maintained fiscal 2024 revenue and margin guidance.
In its trading update for the three months to September 30, the company reported organic revenue growth of 2.6 percent, including continued strength in Europe, UK and Asia.
North America organic revenue growth was 1.4 percent and North America Pest Control Organic revenue growth was 1.4 percent.
The company further announced that action plans to increase North America organic growth and rebalance the cost base have been strengthened since the September trading update.
For fiscal 2024, the company continues to expect Group Adjusted PBTA to be around 700 million pounds and Group Adjusted Operating Profit margin to be around 15.5 percent.
North America organic growth guidance for the period remains around 1 percent. North America Adjusted Operating Profit margin is anticipated to be around 17.2 percent.
For fiscal 2025, profit and margin will be affected by the timing of synergy delivery, expected to be pushed out by approximately 2 to 3 months as a result of the Q1 2025 integration review period.
Andy Ransom, Chief Executive of Rentokil Initial, said, 'The Group delivered Organic Revenue growth of 2.6 percent in Q3, with strength in the International business. In North America, we recognise the business has underperformed and we are focused on delivering the operational improvements required. We are expanding our initiatives to increase organic growth and we are taking action to mitigate cost overruns.'
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