(Reuters) -Rentokil Initial shares rose nearly 18% on Thursday, after the British pest control company reported a better-than-expected rise in third-quarter organic revenue due to improving conditions in its U.S. market and robust international activity.
Demand for pest control rose across its largest market, North America, with stronger lead flow and sales momentum driven by the company’s improved execution of digital marketing strategies and expanded door-to-door outreach.
“We see results as positive on U.S. recovery momentum,” Jefferies analysts said in a note.
West Sussex-based Rentokil posted third-quarter group organic growth of 3.4%, beating Jefferies’ estimate of 2.4%.
Rentokil shares were up 8.7% at 442.9 pence, as of 0757 GMT, placing the stock on top of the FTSE 100 index, which was up 0.1%.
The company said its cost-cutting actions remained on track, adding that it expected to deliver an operating margin above 20% in North America post-2026.
(Reporting by Ankita Bora in Bengaluru; Editing by Subhranshu Sahu)
