Robert vt Hoenderdaal
UK-based Rentokil Initial (NYSE:RTO) stock slumped 18% on Wednesday during pre-market trade as the pest control firm gave a profit warning, hit by a slowdown in North America.
“While we saw some positive momentum in North America sales activity at the end of the second quarter, the trading performance in July and August was lower than anticipated.” the company said.
Rentokil (RTO) pointed that North America operating profit is impacted by higher sales, service and other costs.
It now expects FY 2024 North America adjusted operating profit margin of17.2% and group adjusted operating profit margin of 15.5%.
The estimated drop through impact of the revised North America growth expectation on FY 2024 adjusted operating profit is £20M.
