Rentokil sees North America revenue at lower-end of forecast, shares drop (updated)
25/07/2024 09:49
(Adds analyst comment in paragraph 4 and details)
July 25 (Reuters) - Shares of Rentokil Initial RTO.L
slumped nearly 7% on Thursday after the British pest control
company said its annual organic revenue growth for its North
American segment would come in at the lower-end of its forecast.
In March, the London-listed company forecast its full-year
organic revenue to grow within the range of 2% to 4% for its
North American business.
The company also posted on Thursday a 1.5% organic revenue
growth for its North American pest control category in the
second quarter, compared with a 1% growth in the prior quarter.
"Investors are ostensibly reacting to the muted
quarter-on-quarter improvement in organic growth for the
beleaguered North America pest control business," said Grant
Slader, analyst, Morningstar.
Peer Rollins ROL.N posted a 7.7% organic revenue growth in
the second quarter, helped by steady demand for its pest control
services in the United States.
(Reporting by Yamini Kalia in Bengaluru; Editing by Sherry
Jacob-Phillips)
((Yamini.Kalia@thomsonreuters.com;))