Are you worried about your investments? Rentokil Initial, a British pest control company, issued a warning about lower annual profits due to weak sales in North America. This marks the third warning in the past year, causing the company's shares to plummet by as much as 20%. With approximately 60% of its revenue coming from North America, Rentokil plans to cut jobs to address cost overruns following disappointing sales in July and August. Analysts had expected a higher profit, further raising concerns about management control in the region.
Investors should take note of this development, especially since Rentokil and rival Rollins dominate the U.S. pest control market. Activist investor Nelson Peltz's Trian Fund Management has also shown interest in the company. This news could have significant implications for the financial markets and individual investors alike.