Rentokil revenue grows despite disinfection demand slowing
Pest control and hygiene firm Rentokil Initial revenue grew over the past three months thanks to recent acquisition.
The Camberley-based company reported revenue jumped 0.5 per cent to £761.9m for the third quarter of 2021.
Shares dropped almost two per cent on Thursday morning, although the business said it had seen a strong performance across key divisions.
Its disinfection business reported subdued revenue following intense demand for hygiene products in the early months of the pandemic last year.
Disinfection sales reduced in line with expectations to £11.4m compared with £75.7m in the first quarter and £22.6m in the second quarter.
The company recently upped its growth targets and announced plans to expand its hygiene arm.
It also lifted sales and earnings goals, lifting its organic medium-term revenue growth target to between 4 per cent and 5 per cent up from 3 per cent to 4 per cent previously.
Andy Ransom, Rentokil’s chief executive, said: “We have delivered a strong performance from our core businesses in the quarter and are confident of sustaining this momentum for the remainder of the year.
“Assuming no further significant deterioration in trading conditions arising from the pandemic, our performance in the third quarter- combined with further progress in our value-creating M&A programme – means we remain on track to deliver a full year performance in line with the guidance given at our interim results in July.”