Rentokil Stock Gains: Trading In-Line, North America CEO to Step Down

Rentokil Initial’s (LON: RTO) (NYSE: RTO) stock price surged over 4% Tuesday after the company reported it traded in line with market expectations for the full year ending 31 December 2024. 

The pest control and hygiene services firm also announced a leadership change in its North American operations.

In its latest trading update, Rentokil revealed that group organic revenue grew by 3% in the fourth quarter, with North America posting a 2.3% organic revenue increase, up from 1.4% in the previous quarter. 

The company said growth in North America’s pest control services hit 1.5%, bolstered by improved momentum in inbound leads and its marketing initiatives. 

Adjusted operating margins and profit before tax and amortisation (PBTA) for FY24 also met prior guidance.

“In North America, our integration is continuing to plan. Q4 pilots of new satellite branches, new technician and sales pay plans, and first re-routing and re-branding activities were delivered to plan,” said the company.

Meanwhile, Rentokil also confirmed that Brad Paulsen, CEO of North America, will step down in April 2025 to join a publicly listed US company in the building materials sector.

Chief Commercial Officer Alain Moffroid has been appointed interim CEO for the region and will join the business in the coming weeks..

“He [Moffroid] is a highly experienced leader in the Company with extensive experience of both residential and commercial pest control and is currently working closely with the North American business on its customer experience and retention, digital and innovation programmes,” said the company.