21st Apr 2022 09:26
(Alliance News) - Rentokil Initial PLC on Thursday said it made a solid start to 2022, offsetting input cost inflation with price rises.
The pest control and hygiene firm has "started well", it said. Revenue in the first quarter of 2022 grew 1.8% annually to GBP722.0 million.
Excluding the disinfection business that got a Covid-19 boost last year, first quarter revenue was up 12%.
Rentokil said it has experienced inflationary pressures in the period, but it has managed to mitigate any squeeze on margins through annual price increases.
"Total price increases achieved in Q1 have entirely offset input cost inflation in the quarter and we remain confident that we will be able to continue to counter rising inflation through APIs during the course of the year," Rentokil explained.
The company said it is performing in line with expectations. Though it will lap strong disinfection revenue in the first half amid a backdrop of macroeconomic uncertainty, it expects to deliver "good operational and financial progress" in the coming year.
It acquired 11 firms in the first quarter, 10 of which in the hygiene & wellbeing space.
On its ongoing acquisition of Terminix Global Holdings Inc, Rentokil said there are still some conditions to be met. However, it is on track to seal the deal in the second half of 2022.
In March, it said the takeover achieved antitrust approval in the US. Rentokil first announced the deal to buy, Memphis, Tennessee-based pest control firm Terminix for USD6.7 billion back in December.
In addition, Rentokil on Thursday said it has no exposure to Russia or Ukraine.
Shares in the company were 2.5% higher at 527.40 pence each in London on Thursday morning, one of the best blue-chip performers.
By Eric Cunha; [email protected]
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