UPDATE 1-Pest control firm Rentokil flags softer demand in North America
(Adds background in paragraph 3, details from co statement in paragraph 4)
Oct 19 (Reuters) - Britain's Rentokil Initial said on Thursday it expects its biggest market North America to record full-year performance slightly below previous forecast due to softer consumer demand for its pest control and hygiene services.
The London-listed company now expects its annual adjusted operating margin for North America to be in the range of 18.5%-19%, compared with its previous guidance of about 19.5%. Its group revenue rose nearly 60% in the third quarter.
Rentokil operates in 90 countries and offers pest control, core washroom, air care and many other hygiene-related services. Last year, it completed its $6.7 billion deal to buy Terminix, making it the largest pest control provider in North America.
North America, which accounted for nearly half of its revenue in 2022, saw a decline of 2.5% in its U.S. products wholesale distribution business in the three months to Sept. 30, on weak demand for chemical products. "While customer retention rates remained resilient, new residential customer acquisition was challenged by the macroeconomic backdrop," the company said in a statement referring to North America. (Reporting by Aatrayee Chatterjee and Anchal Rana in Bengaluru; Editing by Subhranshu Sahu)
