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ManpowerGroup Reports 3rd Quarter 2024 Results

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ManpowerGroup (NYSE: MAN) reported Q3 2024 results with revenues of $4.5 billion, a 3% decrease from the prior year. Net earnings were $22.8 million or $0.47 per diluted share, compared to $30.3 million or $0.60 per share in Q3 2023. Excluding restructuring costs and a discrete tax item, earnings per share were $1.29, an 8% decrease in constant currency.

The company faced challenging conditions in North America and Europe, while experiencing good demand in Latin America and Asia-Pacific. ManpowerGroup launched innovative branch offices inside select Walmart locations in the U.S. and reached an agreement to sell its South Korea business. The company repurchased $29 million of common stock during the quarter.

For Q4 2024, ManpowerGroup anticipates diluted earnings per share between $0.98 and $1.08, including an estimated unfavorable currency impact of 1 cent.

Positive
  • Gross profit margin remained solid at 17.3%
  • Permanent recruitment levels stable
  • SG&A reductions reflect adjustments to market conditions (-5% both as reported and constant currency)
  • Launched innovative Manpower branch offices inside select Walmart locations in the U.S.
  • Reached agreement to sell South Korea business, to operate as a Manpower Franchise in the future
  • $29 million of common stock repurchased during the quarter
Negative
  • Revenues decreased by 3% (2% in constant currency) to $4.5 billion
  • Net earnings per share decreased from $0.60 to $0.47 year-over-year
  • Challenging environment in North America and Europe
  • Restructuring costs and a discrete tax item reduced earnings per share by $0.82 in Q3
  • Nine-month net earnings decreased from $3.42 to $2.53 per diluted share year-over-year

Insights

ManpowerGroup's Q3 2024 results reflect ongoing challenges in key markets. Revenues decreased by 3% to $4.5 billion, with a 2% decline in constant currency. The gross profit margin held steady at 17.3%, indicating resilience in pricing despite market pressures.

Notably, earnings per share (EPS) fell to $0.47, down from $0.60 year-over-year. However, excluding restructuring costs and a discrete tax item, adjusted EPS was $1.29, representing an 8% decrease in constant currency. This suggests underlying business performance, while weakened, is not as dire as headline figures imply.

The company's cost-cutting measures, evidenced by a 5% reduction in SG&A expenses, demonstrate management's proactive approach to the challenging environment. The launch of Manpower branches in Walmart locations and the agreement to sell the South Korea business indicate strategic moves to optimize operations and explore new growth avenues.

For investors, the $29 million in share repurchases signals confidence in the company's long-term prospects, despite near-term headwinds. The Q4 EPS guidance of $0.98 to $1.08 suggests expectations of continued pressure but also some stability in the business environment.

The global staffing market is facing headwinds, particularly in developed economies. ManpowerGroup's results highlight a dichotomy between regions, with North America and Europe experiencing challenges while Latin America and Asia-Pacific show good demand. This geographic diversification helps buffer against localized economic slowdowns.

The stability in permanent recruitment levels is a positive sign, indicating that while companies are cautious, they are still investing in long-term talent acquisition. The innovative approach of opening Manpower branches in Walmart stores is a strategic move to tap into a broader talent pool and increase visibility among job seekers.

The decision to sell the South Korea business and convert it to a franchise model aligns with a trend of localizing operations in competitive Asian markets. This could potentially reduce operational costs while maintaining brand presence. The company's focus on "Diversification, Digitization and Innovation" initiatives suggests a forward-looking strategy to adapt to changing labor market dynamics and technological advancements in recruitment processes.

Overall, while the current environment is challenging, ManpowerGroup's strategic actions and global presence position it to navigate the downturn and potentially emerge stronger when labor markets improve.

  • Revenues of $4.5 billion (-3% as reported, -2% constant currency)
  • Continuation of challenging environment in North America and Europe during the quarter, good demand in Latin America and Asia-Pacific region
  • Gross profit margin of 17.3%.  Staffing margins remained solid; permanent recruitment levels stable
  • SG&A reductions reflect adjustments to market conditions during the quarter (-5% both as reported and constant currency as adjusted1)
  • U.S. business launched innovative Manpower branch offices inside select Walmart locations during the quarter
  • Reached agreement to sell our South Korea business, which will operate as a Manpower Franchise in the future
  • $29 million of common stock repurchased during the quarter

MILWAUKEE, Oct. 17, 2024 /PRNewswire/ -- ManpowerGroup (NYSE: MAN) today reported net earnings of $0.47 per diluted share for the three months ended September 30, 2024 compared to net earnings of $0.60 per diluted share in the prior year period.  Net earnings in the quarter were $22.8 million compared to net earnings of $30.3 million a year earlier. Revenues for the third quarter were $4.5 billion, a 3% decrease from the prior year period.

The current year quarter included restructuring costs and a discrete tax item which reduced earnings per share by $0.82 in the third quarter. Excluding these charges, earnings per share was $1.29 per diluted share in the quarter representing a decrease of 8% in constant currency.2

Financial results in the quarter were also impacted by the U.S. dollar relative to foreign currencies compared to the prior year period.3 On a constant currency basis, revenues decreased 2% compared to the prior year period.

Jonas Prising, ManpowerGroup Chairman & CEO, said, "The operating environment has not changed significantly through the third quarter and employers in North America and Europe remain cautious.  Although demand levels have largely stabilized at lower levels in these markets, during the quarter we have taken additional cost actions based on the extended duration of the current operating environment. At the same time, our experienced management team continues to drive our key Diversification, Digitization and Innovation initiatives which are strengthening ManpowerGroup for the future.

We anticipate diluted earnings per share in the fourth quarter will be between $0.98 and $1.08, which includes an estimated unfavorable currency impact of 1 cent. Our guidance excludes any restructuring costs and any Argentina related impact of non-cash currency translation losses."

Net earnings for the nine months ended September 30, 2024 were $122.6 million, or net earnings of $2.53 per diluted share compared to net earnings of $173.3 million, or net earnings of $3.42 per diluted share in the prior year, respectively. The current year to date period included restructuring costs, run-off losses related to the Proservia Germany business, and Argentina hyperinflationary related non-cash currency translation losses which reduced earnings per share by $1.00. Excluding the net impact of these charges, earnings per share for the nine-month period was $3.53 per diluted share representing a decrease of 20% in constant currency.4 Revenues for the nine-month period were $13.5 billion, representing a decrease of 6% compared to the prior year or a decrease of 4% in constant currency. Earnings per share for the nine-month period were negatively impacted by 15 cents due to changes in foreign currencies compared to the prior year.

In conjunction with its third quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on October 17, 2024 at 7:30 a.m. central time (8:30 a.m. eastern time). Prepared remarks for the conference call, webcast details, presentation and recordings are included within the Investor Relations section of manpowergroup.com.

Supplemental financial information referenced in the conference call can be found at http://investor.manpowergroup.com/.

About ManpowerGroup 
ManpowerGroup® (NYSE: MAN), the leading global workforce solutions company, helps organizations transform in a fast-changing world of work by sourcing, assessing, developing, and managing the talent that enables them to win. We develop innovative solutions for hundreds of thousands of organizations every year, providing them with skilled talent while finding meaningful, sustainable employment for millions of people across a wide range of industries and skills. Our expert family of brands – Manpower, Experis, and Talent Solutions – creates substantially more value for candidates and clients across more than 70 countries and territories and has done so for 75 years. We are recognized consistently for our diversity – as a best place to work for Women, Inclusion, Equality, and Disability, and in 2024 ManpowerGroup was named one of the World's Most Ethical Companies for the 15th time – all confirming our position as the brand of choice for in-demand talent. For more information, visit  www.manpowergroup.com

Forward-Looking Statements
This press release contains statements, including statements regarding economic and geopolitical uncertainty, trends in labor demand and the future strengthening of such demand, financial outlook, the expected closing of the sale of the South Korea business and the Company's strategic initiatives and technology investments that are forward-looking in nature and, accordingly, are subject to risks and uncertainties regarding the Company's expected future results.  The Company's actual results may differ materially from those described or contemplated in the forward-looking statements due to numerous factors.  These factors include those found in the Company's reports filed with the SEC, including the information under the heading "Risk Factors" in its Annual Report on Form 10-K for the year ended December 31, 2023, which information is incorporated herein by reference.

The Company assumes no obligation to update or revise any forward-looking statements. We reference certain non-GAAP financial measures, which we believe provide useful information for investors. We include a reconciliation of these measures, where appropriate, to GAAP on the Investor Relations section of our website at manpowergroup.com.

1 Adjusted to exclude restructuring costs of $37.6 million in the third quarter of 2024 and $38.1 million in the third quarter of 2023.

2 The prior year period included restructuring costs, a small loss from the sale of our Philippines business and Argentina related currency translation losses which reduced earnings per share by $0.78 which are also excluded when determining the year over year trend.

3 The third quarter earnings per share guidance estimated a negative 5 cents foreign currency impact and the actual impact was slightly better at negative 3 cents.

4 The prior year period included restructuring costs, a small loss from the sale of our Philippines business and Argentina related currency translation losses which reduced earnings per share by $1.16 which are also excluded when determining the year over year trend.

ManpowerGroup


Results of Operations


(In millions, except per share data)









 

Three Months Ended September 30

 




 

% Variance

 




 

Amount

 
 

Constant

 


 

2024

 
 

2023

 
 

Reported

 
 

Currency

 


(Unaudited)


Revenues from services (a)

$           4,530.2

$      4,675.6

-3.1 %

-1.8 %








Cost of services 

3,748.1

3,853.7

-2.7 %

-1.5 %








  Gross profit

782.1

821.9

-4.8 %

-3.7 %








Selling and administrative expenses

711.3

752.1

-5.4 %

-4.4 %








  Operating profit

70.8

69.8

1.5 %

4.5 %








Interest and other expenses, net

11.6

15.1

-23.3 %









  Earnings before income taxes

59.2

54.7

8.3 %

6.4 %








Provision for income taxes

36.4

24.4

49.2 %









  Net earnings

$                22.8

$           30.3

-24.7 %

-26.1 %








Net earnings per share - basic

$                0.48

$           0.61

-21.7 %









Net earnings per share - diluted

$                0.47

$           0.60

-21.6 %

-23.0 %








Weighted average shares - basic

47.6

49.5

-3.9 %









Weighted average shares - diluted 

48.1

50.1

-4.0 %















(a)  Revenues from services include fees received from our franchise offices of $3.3 million and $3.8 million for the three
      months ended September 30, 2024 and 2023, respectively. These fees are primarily based on revenues generated by the
      franchise offices, which were $282.5 million and $243.5 million for the three months ended September 30, 2024 and 2023,
      respectively.


 

ManpowerGroup


Operating Unit Results


(In millions)









 

Three Months Ended September 30

 




 

% Variance

 




 

Amount

 
 

Constant

 


 

2024

 
 

2023(a)

 
 

Reported

 
 

Currency

 


(Unaudited)


Revenues from Services:






  Americas:






      United States  (b)

$                    697.4

$                    730.2

-4.5 %

-4.5 %


      Other Americas

353.1

381.1

-7.3 %

13.1 %



1,050.5

1,111.3

-5.5 %

1.5 %


  Southern Europe:






      France

1,179.7

1,209.9

-2.5 %

-3.3 %


      Italy

419.1

413.7

1.3 %

0.5 %


      Other Southern Europe

496.8

485.1

2.4 %

2.1 %



2,095.6

2,108.7

-0.6 %

-1.3 %








  Northern Europe

828.3

914.2

-9.4 %

-11.0 %


  APME

562.8

564.8

-0.3 %

1.6 %



4,537.2

4,699.0




  Intercompany Eliminations

(7.0)

(23.4)





$                 4,530.2

$                 4,675.6

-3.1 %

-1.8 %








Operating Unit Profit (Loss):






  Americas:






      United States

$                     22.3

$                     24.5

-9.0 %

-9.0 %


      Other Americas

13.8

13.4

3.4 %

9.0 %



36.1

37.9

-4.6 %

-2.7 %


  Southern Europe:






      France

41.7

47.9

-13.0 %

-13.5 %


      Italy

27.4

27.0

1.1 %

-0.1 %


      Other Southern Europe

6.7

9.5

-27.5 %

-25.7 %



75.8

84.4

-10.1 %

-10.6 %








  Northern Europe

(25.7)

(30.6)

16.1 %

18.7 %


  APME

23.0

24.2

-5.5 %

-1.9 %



109.2

115.9




Corporate expenses

(30.2)

(37.4)




Intangible asset amortization expense

(8.2)

(8.7)




    Operating profit

70.8

69.8

1.5 %

4.5 %


Interest and other expenses, net (c)

(11.6)

(15.1)




    Earnings before income taxes

$                     59.2

$                     54.7
















(a)  Effective January 1, 2024, our segment reporting was realigned to include our Puerto Rico business within Other Americas.
       Accordingly, our reportable segment, United States, is now adjusted to exclude Puerto Rico. All previously reported results have
       been restated to conform to the current year presentation.








(b)  In the United States, revenues from services include fees received from our franchise offices of $2.5 million and $3.1
       million for the three months ended September 30, 2024 and 2023, respectively. These fees are primarily based on
       revenues generated by the franchise offices, which were $91.2 million and $98.6 million for the three months ended
       September 30, 2024 and 2023, respectively.








(c)  The components of interest and other expenses, net were:





 

2024

 
 

2023

 



        Interest expense

$                     24.6

$                     21.0




        Interest income

(7.7)

(8.0)




        Foreign exchange loss

1.0

6.0




        Miscellaneous income

(6.3)

(3.9)





$                     11.6

$                     15.1




 

ManpowerGroup


Results of Operations


(In millions, except per share data)









 

Nine Months Ended September 30

 




 

% Variance

 




 

Amount

 
 

Constant

 


 

2024

 
 

2023

 
 

Reported

 
 

Currency

 


(Unaudited)


Revenues from services (a)

$     13,454.2

$    14,284.0

-5.8 %

-3.6 %








Cost of services

11,122.5

11,736.7

-5.2 %

-3.0 %








  Gross profit

2,331.7

2,547.3

-8.5 %

-6.6 %








  Selling and administrative expenses

2,093.9

2,252.0

-7.0 %

-5.4 %








  Operating profit

237.8

295.3

-19.5 %

-15.6 %








Interest and other expenses, net

28.7

34.4

-16.6 %









  Earnings before income taxes

209.1

260.9

-19.8 %

-16.8 %








Provision for income taxes

86.5

87.6

-1.2 %









  Net earnings

$         122.6

$        173.3

-29.3 %

-26.6 %








Net earnings per share - basic

$           2.56

$          3.46

-26.0 %









Net earnings per share - diluted

$           2.53

$          3.42

-26.0 %

-23.2 %








Weighted average shares - basic

47.9

50.1

-4.4 %









Weighted average shares - diluted

48.5

50.7

-4.4 %















(a)  Revenues from services include fees received from our franchise offices of $10.6 million and $11.0 million
       for the nine months ended September 30, 2024 and 2023, respectively. These fees are primarily based on
       revenues generated by the franchise offices, which were $847.4 million and $744.3 million for the nine months
       ended September 30, 2024 and 2023, respectively.


 

ManpowerGroup


Operating Unit Results


(In millions)









 

Nine Months Ended September 30

 




 

% Variance

 




 

Amount

 
 

Constant

 


 

2024

 
 

2023(a)

 
 

Reported

 
 

Currency

 


(Unaudited)


Revenues from Services:






  Americas:






      United States  (b)

$            2,074.8

$            2,180.9

-4.9 %

-4.9 %


      Other Americas

1,076.5

1,159.3

-7.1 %

14.2 %



3,151.3

3,340.2

-5.7 %

1.8 %


  Southern Europe:






      France

3,483.9

3,657.4

-4.7 %

-5.0 %


      Italy

1,258.3

1,293.7

-2.7 %

-3.0 %


      Other Southern Europe

1,432.7

1,452.4

-1.4 %

-0.4 %



6,174.9

6,403.5

-3.6 %

-3.5 %








  Northern Europe

2,535.9

2,834.3

-10.5 %

-11.7 %


  APME

1,639.3

1,770.1

-7.4 %

-1.8 %



13,501.4

14,348.1




  Intercompany Eliminations

(47.2)

(64.1)





$           13,454.2

$           14,284.0

-5.8 %

-3.6 %








Operating Unit Profit (Loss):






  Americas:






      United States

$                 61.7

$                 77.6

-20.6 %

-20.6 %


      Other Americas

45.6

52.1

-12.4 %

-2.4 %



107.3

129.7

-17.3 %

-13.3 %


  Southern Europe:






      France

115.1

142.3

-19.1 %

-19.2 %


      Italy

88.8

94.0

-5.6 %

-5.9 %


      Other Southern Europe

25.0

30.6

-18.0 %

-15.3 %



228.9

266.9

-14.2 %

-14.1 %








  Northern Europe

(28.1)

(35.3)

20.5 %

20.8 %


  APME

67.9

71.0

-4.4 %

3.4 %



376.0

432.3




Corporate expenses

(113.6)

(110.8)




Intangible asset amortization expense

(24.6)

(26.2)




    Operating profit

237.8

295.3

-19.5 %

-15.6 %


Interest and other expenses, net (c)

(28.7)

(34.4)




    Earnings before income taxes

$               209.1

$               260.9
















(a)  Effective January 1, 2024, our segment reporting was realigned to include our Puerto Rico business within Other Americas.
       Accordingly, our reportable segment, United States, is now adjusted to exclude Puerto Rico. All previously reported results have
       been restated to conform to the current year presentation.








(b)  In the United States, revenues from services include fees received from our franchise offices of $8.1 million and $8.9 million
       for the nine months ended September 30, 2024 and 2023, respectively. These fees are primarily based on revenues generated by
       the franchise offices, which were $278.4 million and $298.7 million for the nine months ended September 30, 2024 and 2023,
       respectively.








(c)  The components of interest and other expenses, net were:







 

2024

 
 

2023

 



        Interest expense

$                 67.0

$                 59.7




        Interest income

(24.4)

(24.5)




        Foreign exchange loss

5.2

14.2




        Miscellaneous income

(19.1)

(15.0)





$                 28.7

$                 34.4




 

ManpowerGroup



Consolidated Balance Sheets



(In millions)










 

Sep. 30,

 

 

Dec. 31,

 



 

2024

 

 

2023

 



(Unaudited)



 

ASSETS

 





 

Current assets:

 





  Cash and cash equivalents

$          410.9


$     581.3



  Accounts receivable, net

4,592.8


4,830.0



  Prepaid expenses and other assets

178.9


160.8



      Total current assets

5,182.6


5,572.1









 

Other assets:

 





  Goodwill

1,594.1


1,586.8



  Intangible assets, net

498.1


519.6



  Operating lease right-of-use assets

385.6


414.0



  Other assets

691.1


607.8



      Total other assets

3,168.9


3,128.2









 

Property and equipment:

 





  Land, buildings, leasehold improvements and equipment

539.5


526.5



  Less:  accumulated depreciation and amortization

412.7


396.6



      Net property and equipment

126.8


129.9



             Total assets

$       8,478.3


$   8,830.2









 

LIABILITIES AND SHAREHOLDERS' EQUITY

 





 

Current liabilities:

 





  Accounts payable

$       2,616.1


$   2,723.0



  Employee compensation payable

235.3


243.1



  Accrued liabilities

627.0


693.0



  Accrued payroll taxes and insurance

618.4


695.8



  Value added taxes payable

403.4


432.7



  Short-term borrowings and current maturities of long-term debt

24.8


12.1



      Total current liabilities

4,525.0


4,799.7









 

Other liabilities:

 





  Long-term debt

999.7


990.5



  Long-term operating lease liability

299.0


323.2



  Other long-term liabilities

476.9


482.7



      Total other liabilities

1,775.6


1,796.4









 

Shareholders' equity:

 





  ManpowerGroup shareholders' equity






    Common stock

1.2


1.2



    Capital in excess of par value

3,539.5


3,514.9



    Retained earnings 

3,862.1


3,813.0



    Accumulated other comprehensive loss

(469.9)


(466.0)



    Treasury stock, at cost

(4,756.8)


(4,639.8)



       Total ManpowerGroup shareholders' equity

2,176.1


2,223.3



  Noncontrolling interests

1.6


10.8



          Total shareholders' equity

2,177.7


2,234.1



             Total liabilities and shareholders' equity

$       8,478.3


$   8,830.2



 

ManpowerGroup


Consolidated Statements of Cash Flows


(In millions)








 

Nine Months Ended

 


 

September 30,

 


 

2024

 

 

2023

 


(Unaudited)


 

Cash Flows from Operating Activities:

 




  Net earnings

$     122.6


$     173.3


  Adjustments to reconcile net earnings to net cash provided by operating activities:





      Depreciation and amortization

64.8


64.3


      Loss on sales of subsidiaries, net

-


1.3


      Deferred income taxes

2.0


12.3


      Provision for doubtful accounts

6.0


5.4


      Share-based compensation

22.0


20.0


  Changes in operating assets and liabilities:





      Accounts receivable

237.8


460.2


      Other assets

(108.7)


(51.3)


      Other liabilities

(284.9)


(451.0)


            Cash provided by operating activities

61.6


234.5







 

Cash Flows from Investing Activities:

 




  Capital expenditures

(39.8)


(55.1)


  Acquisition of business, net of cash acquired

(4.9)


-


  Proceeds from the sales of subsidiaries and property and equipment

2.8


2.6


            Cash used in investing activities

(41.9)


(52.5)







 

Cash Flows from Financing Activities:

 




  Net change in short-term borrowings

13.9


(13.7)


  Proceeds from long-term debt

0.6


0.7


  Repayments of long-term debt

(1.2)


(0.7)


  Payments of contingent consideration for acquisitions

(2.8)


-


  Proceeds from share-based awards

0.8


1.8


  Payments to noncontrolling interests

(0.2)


(0.6)


  Other share-based award transactions

(10.4)


(10.3)


  Repurchases of common stock

(106.0)


(129.8)


  Dividends paid

(73.5)


(73.1)


            Cash used in financing activities

(178.8)


(225.7)







Effect of exchange rate changes on cash

(11.3)


(24.2)


Change in cash and cash equivalents

(170.4)


(67.9)







Cash and cash equivalents, beginning of period

581.3


639.0


Cash and cash equivalents, end of period

$     410.9


$     571.1







 

ManpowerGroup Logo (PRNewsfoto/ManpowerGroup)

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SOURCE ManpowerGroup

FAQ

What were ManpowerGroup's (MAN) Q3 2024 revenue and earnings?

ManpowerGroup reported Q3 2024 revenues of $4.5 billion, a 3% decrease from the prior year. Net earnings were $22.8 million or $0.47 per diluted share.

How did ManpowerGroup's (MAN) Q3 2024 results compare to Q3 2023?

Compared to Q3 2023, ManpowerGroup's net earnings decreased from $30.3 million ($0.60 per share) to $22.8 million ($0.47 per share) in Q3 2024.

What is ManpowerGroup's (MAN) earnings guidance for Q4 2024?

ManpowerGroup anticipates diluted earnings per share between $0.98 and $1.08 for Q4 2024, including an estimated unfavorable currency impact of 1 cent.

What strategic moves did ManpowerGroup (MAN) make in Q3 2024?

ManpowerGroup launched innovative branch offices inside select Walmart locations in the U.S. and reached an agreement to sell its South Korea business, which will operate as a Manpower Franchise in the future.

ManpowerGroup

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1.45%
103.5%
3.94%
Staffing & Employment Services
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United States of America
MILWAUKEE