Rentokil Initial Faces Growth Headwinds in North America

Rentokil Initial (GB:RTO) has released an update.

Rentokil Initial has issued a trading update indicating a slower than expected growth in North America, with organic revenue growth now expected to be around 1% for the second half of FY 24. Due to increased costs, including higher sales and service expenses, the company anticipates the North America Adjusted Operating Profit margin to be approximately 17.2%, with the Group’s margin around 15.5%. Despite these challenges, the company remains confident in the long-term potential of its North American business, emphasizing structural growth opportunities and ongoing plans to improve revenue and manage costs.

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