According to a press release from the company, demand for its chemical products in North America is waning. That resulted in its U.S. wholesale distribution business experiencing a 2.5% drop during the third quarter of 2023.
Here’s what Rentokil Initial said about this weakening demand in a news release:
“While customer retention rates remained resilient, new residential customer acquisition was challenged by the macroeconomic backdrop and a softer consumer demand environment. This was reflected in the continuation of late Q2 trends in pest control digital search volumes experienced that reduced lead flow.”
As for the rest of the year, Rentokil Initial is expecting good growth. This has it continuing to expect a 16.5% increase in Adjusted Operating Margin. It also expects to reach 3x net debt to EBITDA by the end of 2023.
RTO Stock Movement on Thursday
The latest update from Rentokil Initial brings with it heavy trading of the company’s stock. This has some 189,000 shares trading hands as investors sell shares. To put that in perspective, the company’s daily average trading volume is closer to 156,000 shares.
RTO stock is down 19.8% as of Thursday morning.
There’s plenty more stock market news traders will want to know about below!
We’re offering up all of the hottest stock market news that investors need to know about on Thursday! That includes what’s happening with shares of Falcons Beyond Global (NASDAQ:FBYD) stock, Nxu (NASDAQ:NXU) stock and Zapp Electric Vehicles (NASDAQ:ZAPP) stock today. All of that news is ready to go down below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.