Rentokil quarterly revenue jumps nearly 10% on disinfection boost

(Reuters) - Rentokil Initial <RTO.L> reported a 9.8% rise in third-quarter revenue on Thursday, as a higher focus on hygiene standards due to the COVID-19 pandemic boosted demand for its disinfection services.

The provider of hand soaps, sanitizers and deep cleaning services has this year introduced new services and expanded its hygiene category into more countries as people increasingly worry about health and hygiene due to the pandemic.

Rentokil said full-year results were expected to at least meet expectations and reiterated it would resume 2020 dividends if the second half performs within its expectations, having suspended payouts earlier this year.

The pest control company posted ongoing revenue of 754.6 million pounds for the quarter, underpinned by a 53% jump in the disinfection business.

However, Rentokil said it expects demand for its one-time disinfection services to reduce as businesses return to more normal trading.

The threat of a resurgence in global coronavirus cases, new and ongoing restrictions, potential customer insolvencies and bad debt could hurt the company's business, Chief Executive Officer Andy Ransom said.

Operating in around 80 countries and employing roughly 43,000 people globally, Rentokil's services to hotels, restaurants, schools and the airline industry were stalled by lockdowns.

(Reporting by Yadarisa Shabong in Bengaluru; Editing by Aditya Soni)