By Sabela Ojea
Rentokil Initial PLC said Thursday that it benefited from revenue growth in the third quarter, boosted by a strong performance at its hygiene business and a return to pest-control growth.
The pest-control, hygiene and workwear services provider said continuing revenue---one of the company's preferred metrics, which shows the performance of continuing operations including acquisitions after removing the effect of disposed or closed businesses--in the third quarter rose by 5.5% to 754.6 million pounds ($992.1 million) at actual exchange rates, or by 9.8% at constant exchange rates.
Its hygiene business grew by 53% versus growth of 16% in the second quarter, while its pest control area grew by 1.3%, compared with a decline of 5.9% in the previous quarter.
Total disinfection revenue rose 54% to GBP74.6 million in the third quarter, with North America contributing revenue of GBP49.6 million, Rentokil said.
The London-listed company said revenue rose 4.3% to GBP758.1 million at actual exchange rates, or 8.5% at constant exchange rates, adding that its dividend guidance remains in place given its performance for the period. It will announce a dividend payment in relation to 2020 in February 2021.
"We have consistently delivered year-on-year revenue growth each month since the declines in April and May during the peak of the crisis. This performance has been achieved through a combination of a return to more regular levels of service provision across our categories, continued high demand for one-time disinfection services and the benefit of acquisitions made in 2019," Chief Executive Andy Ransom said.
Write to Sabela Ojea at email@example.com; @sabelaojeaguix