Rentokil Initial reports 3.4 percent organic revenue rise

RENTOKIL INITIAL PLC reported a steady increase in first-quarter revenue, driven primarily by strategic price adjustments and sustained growth in its North American operations. The company, headquartered in the United Kingdom, confirmed its full-year outlook remains in line with market expectations following a period of organic growth.

For the three-month period ending March 31, the group saw total revenue reach $1.68 billion, representing a 4.3% increase on a constant-currency basis. Organic revenue growth stood at 3.4%, a result the company attributed to its ability to implement price increases effectively across various markets. This update marks the first trading report under the leadership of Mike Duffy, who assumed the role of chief executive officer on March 16.

The North American division remains a significant driver for the firm, with revenue rising 4.5% to $995 million. Organic growth in this region was 3.9%, supported by pricing power and a recovery from weather-related disruptions experienced in late January. Conversely, the Middle East, North Africa, and Turkey (MENAT) region faced challenges due to ongoing regional conflicts, which created a 60-basis-point headwind. International revenue overall grew by 4.1% to $682 million despite these geopolitical pressures and weaker comparatives in the Pacific region.

In addition to organic growth, the company continued its expansion strategy through nine bolt-on acquisitions during the quarter. These transactions are expected to contribute approximately $19 million in annualized revenue, further strengthening the company's global footprint in the pest control and hygiene sectors.