LONDON (dpa-AFX) - Rentokil Initial (RTO.L, RTOKY.PK) stated that, despite some positive momentum in North American sales activity at the end of the second quarter, trading performance in July and August fell short of expectations. Additionally, branch integration has caused minor disruptions to organic growth. Consequently, the company now anticipates Organic Revenue growth in North America of about 1% for the second half of 2024.
As a result of lower than expected lead flow and sales growth, the North America operations was over-resourced in both sales and service. Increased weekend working to drive additional revenue also resulted in an increase in overtime expenditure. In addition, spend on materials and consumables is higher than expected, the British commercial pest control services company said in a statement.
The aggregate impact of the cost items on fiscal year 2024 Group Adjusted Operating Profit is anticipated to be about 50 million pounds.
Since the Interim Results, the Sterling has strengthened against the US Dollar, and hyperinflation has eased in several markets. If current exchange rates persist through the end of the year, this will result in an additional headwind of about 10 million pounds to fiscal year 2024 Adjusted profit before tax, the company said.
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