Rentokil Initial's shares plummeted by 18% following a profit warning due to a slowdown in North American demand, wiping out over £2 billion in market value. The pest control company anticipates adjusted operating profits of about £700 million for 2024, significantly lower than previously forecasted, affected by weaker-than-expected sales in July and August. The company expanded its workforce in anticipation of peak season activity, which did not materialize, leading to overstaffing and increased costs. Adjusted profit margins are now expected to be around 15.5%, a downgrade from earlier projections. Rentokil's management is now focused on mitigating costs and improving revenue through strategic plans, despite expressing confidence in the underlying strength of its North American operations. The fallout from this warning is expected to intensify pressure from activist investors like Nelson Peltz.