Rentokil Q3 revenue rises on strong pest control performance

Rentokil reported a jump in revenue for the third quarter following an “excellent” performance from the pest control business.

Revenue was up 32.1% to £578.3m, or 15.7% higher at constant exchange rates. Meanwhile, revenue from ongoing operations was up 33.1% to £576.7m, or 16.6% at constant exchange rates. Of that, 3.1% was organic growth, versus 2.5% in the first half, and 13.5% was from acquisitions.

Rentokil bought 13 businesses in the quarter, including 10 in pest control and two in hygiene, as well as the acquisition of Residex, a pest control and turf products distribution business.

The pest control business saw organic growth of 5.9%, while the hygiene business grew 3.2% on an organic basis.

Rentokil said the majority of its regions have performed well in the period, reflecting good performances in Asia, Pacific, Latin America, the UK and in its largest market, North America.

The group said that while conditions remain tough in parts of Europe, particularly in France, overall the region delivered modest revenue growth in the third quarter.

Chief executive Andy Ransom said: “I am pleased with our performance in the third quarter. Pest Control grew organically by almost 6%, reflecting good performances in Asia, Pacific, Latin America, the UK and our key growth market of North America. I am also encouraged by ongoing traction in our Hygiene business which delivered organic growth of 3.2%. Our guidance for the full year is unchanged."