By Anandita Mehrotra
(Reuters) -Britain’s Rentokil Initial on Thursday said its organic revenue rose nearly 2% in the first quarter, helped by broad strength in its international pest control business that helped offset sluggishness in North America, its largest market.
The century old company, which provides pest control and hygiene services, said that it remains confident about longer-term prospects despite looming macroeconomic uncertainties.
Its shares were up 3.8% at 345.8 pence by 0925 GMT, while the broader FTSE 100 index was down 0.77%.
Proposed U.S. tariffs have exacerbated ongoing disruptions to global supply chains, ratcheting up uncertainties for companies around the world as they scramble to adapt to rapidly changing policies and escalating trade tensions.
In a post-earnings call, CEO Andy Ransom said Rentokil does not expect direct impact from tariffs, but the company may experience a “slight rise” in input costs such as those for chemicals and small electrical equipment.
“The absence of any reiteration of FY outlook in the press release may suggest risks to expectations in the context of weak U.S. performance and rising macro uncertainties,” Jefferies analyst Allen Wells said in a note.
Sales from North America, which made up about 60% of Rentokil’s revenue last year, rose 0.5% to $951 million, slower than the 1.5% growth last year, which it attributed to muted demand for pest control services and one fewer trading day.
Rentokil, which overhauled North America management last October to fix underperformance in the region, said customer retention in that market rose slightly in the quarter due to strategies such as driving leads digitally and door-to-door sales.
The company posted total revenue of $1.64 billion for the quarter ended March 31, up from $1.61 billion last year.
(Reporting by Anandita Mehrotra and Pushkala Aripaka in Bengaluru; Editing by Savio D’Souza, Eileen Soreng and David Evans)
