On Tuesday, Rentokil Initial (NYSE: RTO), the British pest control firm, said its organic revenue grew 3% in the fourth quarter, led by faster growth in North America versus 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.
Chief Commercial Officer Alain Moffroid would replace him on an interim basis.
Analysts at Jefferies said the change in the U.S. management was a blow to the company’s North American 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 American business in October after expressing disappointment with the group’s strategy execution.
Rentokil, which turns 100 years old this year, said its integration continued as planned after its $6.7 billion acquisition of Terminix in 2021 made it the largest player in the U.S. pest control market.