(Reuters) – British pest control firm Rentokil Initial said on Tuesday its organic revenue grew 3% in the fourth quarter, led by faster growth in North America compared to the previous quarter, as moves to overhaul its business began to pay off.
Shares in the FTSE 100 company rose 4% in early trading, with analysts at Stifel calling the company’s performance “robust”.
Rentokil also said its North America CEO Brad Paulsen will step down after two years in the role, to pursue another job in a U.S.-listed company in the building materials sector.
He will be replaced by Chief Commercial Officer Alain Moffroid on an interim basis.
Analysts at Jefferies said the change in the U.S. management was a blow to the company’s North America business, whose underperformance Rentokil is still trying to fix after multiple warnings last year.
Rentokil CEO Andy Ransom had overhauled the management of the North America business in October after expressing disappointment on the execution of the groups’ strategy.
Rentokil, which turns 100 years old this year, said its integration was continuing as planned after its $6.7 billion acquisition of Terminix in 2021 made it the largest player in the U.S. pest control market.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Janane Venkatraman and Sonia Cheema)
