Rentokil Initial plummeted 17% in early trading after the pest-control and hygiene services giant reported second-quarter organic growth in North America that fell short of market expectations. The region, which accounts for a significant portion of group revenue, showed signs of slowing demand, dragging down overall performance.
The FTSE 100 company cited a more challenging macroeconomic backdrop in the U.S., where residential and small-business customers delayed discretionary spending. While the firm maintained its full-year outlook, analysts warned that the deceleration in its largest market could pressure margins if the trend persists into the second half.
Shares in Rentokil dropped to their lowest level in over two years, wiping billions off its market capitalization. Investors are now closely watching the integration of Terminix, acquired in 2022, for signs of synergy realization and cross-selling momentum that could offset the organic slowdown.
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