Rentokil Initial reported a nearly 2% rise in first-quarter organic revenue, reaching a total of $1.64 billion, primarily driven by robust performance in its international pest control operations.
This global strength helped mitigate a sluggish North American market, which accounts for approximately 60% of the company's revenue. Sales in North America grew a modest 0.5% to $951 million, a deceleration from the 1.5% growth observed in the previous year, attributed to muted demand and one fewer trading day.
Despite these regional challenges, Rentokil expressed confidence in its longer-term prospects, even as macroeconomic uncertainties, including proposed U.S. tariffs and global supply chain disruptions, loom. CEO Andy Ransom anticipates only a "slight rise" in input costs from tariffs.
However, Jefferies analyst Allen Wells noted the absence of a reiterated full-year outlook, suggesting potential risks to expectations given the weak U.S. performance. The company has implemented strategies, including a management overhaul in North America last October, which contributed to a slight improvement in customer retention in the region.
