Rentokil shares jump as group moves to fix North America business
Sees 2025 profit and margins hurt by delay in realising Terminix acquisition benefits
N. America Q3 organic revenue growth ahead of H2 guidance range
Results suggest some early traction on growth plan - Jefferies
Adds CEO comment, analysts comment, shares and details
By Shanima A
Oct 17 (Reuters) -British pest control company Rentokil RTO.L reported a 2.6% rise in third-quarter revenue and announced a management overhaul at its struggling North American business on Thursday, sending its shares 8% up.
It said in a statement its North America finance chief has left the business and the group has appointed a new chief marketing officer and chief operating officer in the region. It has yet to appoint a new CFO.
News of the changes helped offset investor disappointment after Rentokil said its profit and margins in 2025 will be hit by a two- to three-month delay in realising the benefits of its acquisition of U.S. rival Terminix.
The company also said organic revenue growth in North America, its biggest market, was 1.4% in the third quarter, indicating that it was tracking ahead of the 1% rise it guided last month for the region in the second half.
Rentokil had last month flagged weaker-than-expected sales in North America - the third warning in the past year. At the time, CEO Andy Ransom had also expressed disappointment on the execution of the group's strategy.
"Results suggest some early traction on growth plan," brokerage Jefferies said in a note.
Rentokil said its North America business has "underperformed" and has been hurt by higher-than-expected material and consumable costs, partly due to inflation. It has also cut about 250 jobs in the region.
Rentokil and rival Rollins ROL.N account for roughly half of the U.S. pest control market, with Rentokil the larger player following its $6.7 billion acquisition of Terminix in 2021.
It said synergies from its integration with Terminix would be delayed by two- to three-months as it pilots new pay plans and new satellite branches in the fourth quarter and plans to review the programs early in the new year.
Reporting by Yamini Kalia and Shanima A in Bengaluru; Editing by Subhranshu Sahu, Savio D'Souza and Emelia Sithole-Matarise
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Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
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