ManpowerGroup Reports 4th Quarter 2024 Results
Rhea-AI Summary
ManpowerGroup (NYSE: MAN) reported Q4 2024 financial results with revenues of $4.4 billion, representing a 5% decrease (3% in constant currency) from the previous year. The company posted net earnings of $22.5 million, or $0.47 per diluted share, compared to net losses of $84.5 million ($1.73 per share) in the prior year period.
The quarter included restructuring costs, pension settlements, and losses from the Austria business sale, reducing earnings by $0.55 per share. Excluding these charges, earnings were $1.02 per diluted share, a 27% decrease in constant currency. The company experienced challenging conditions in Europe and North America, while Asia Pacific and Latin America showed good demand. The gross profit margin was 17.2%, with staffing margins remaining solid despite a slight decrease from mix.
For the full year 2024, revenues were $17.9 billion, down 6% (3% in constant currency), with net earnings of $145.1 million ($3.01 per diluted share). The company expects Q1 2025 earnings between $0.47 and $0.57 per share.
Positive
- Strong cash flow from operating activities with three-day reduction in Days Sales Outstanding
- $34 million in share repurchases executed
- Solid staffing margins maintained despite market challenges
- Good demand performance in Asia Pacific and Latin America regions
Negative
- Revenue declined 5% to $4.4 billion in Q4 2024
- Earnings per share decreased 27% (excluding charges) in constant currency
- Challenging market conditions in Europe and North America
- Full-year 2024 revenue dropped 6% to $17.9 billion
- Restructuring costs and business sale losses impacted earnings negatively
News Market Reaction
On the day this news was published, MAN gained 0.55%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Revenues of
$4.4 billion 5% as reported, -3% constant currency) - Regional trends largely unchanged as
Europe andNorth America experienced a challenging environment whileAsia Pacific andLatin America saw good demand - Gross profit margin of
17.2% . Staffing margins remained solid with slight decrease from mix; permanent recruitment largely stable at lower levels across most major markets - SG&A reductions partially offset gross profit declines during the quarter
- Strong cash provided by operating activities1 during the quarter with a three-day reduction in Days Sales Outstanding at year end;
$34 million
The current year quarter included restructuring costs, pension settlements and net losses from the sale of our
Financial results in the quarter were also impacted by the
Jonas Prising, ManpowerGroup Chair & CEO, said, "The operating conditions experienced across our regions came in largely as expected during the quarter with relatively stable activity at lower levels across
We anticipate diluted earnings per share in the first quarter will be between
Net earnings for the year ended December 31, 2024 were
In conjunction with its fourth quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on January 30, 2025 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 global economic and geopolitical uncertainty, trends in labor demand and the future strengthening of such demand, financial outlook, the outlook for our business in regions in which we operate as well as key countries within those regions, and the Company's strategic initiatives and technology investments, including transformation programs and the positioning of future growth for our brands 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 Cash provided by operating activities equaled
2 The prior year period included various adjustments which reduced earnings per share by
3 The fourth quarter earnings per share guidance estimated a negative
4 The prior year period included various adjustments which reduced earnings per share by
ManpowerGroup | ||||
Results of Operations | ||||
(In millions, except per share data) | ||||
Three Months Ended December 31 | ||||
% Variance | ||||
Amount | Constant | |||
2024 | 2023 | Reported | Currency | |
(Unaudited) | ||||
Revenues from services (a) | $ 4,399.7 | $ 4,630.5 | -5.0 % | -2.9 % |
Cost of services | 3,644.6 | 3,819.8 | -4.6 % | -2.5 % |
Gross profit | 755.1 | 810.7 | -6.9 % | -4.9 % |
Selling and administrative expenses, | 686.9 | 795.1 | -13.6 % | -12.0 % |
Goodwill impairment charge (b) | - | 55.1 | N/A | N/A |
Selling and administrative expenses | 686.9 | 850.2 | -19.2 % | -17.7 % |
Operating profit (loss) | 68.2 | (39.5) | 272.6 % | 280.2 % |
Interest and other expenses, net | 20.5 | 15.5 | 32.1 % | |
Earnings (loss) before income taxes | 47.7 | (55.0) | 186.9 % | 196.4 % |
Provision for income taxes | 25.2 | 29.5 | -14.8 % | |
Net earnings (loss) | $ 22.5 | $ (84.5) | 126.6 % | 129.5 % |
Net earnings (loss) per share - basic | $ 0.48 | $ (1.73) | 127.5 % | |
Net earnings (loss) per share - diluted | $ 0.47 | $ (1.73) | 127.2 % | 130.1 % |
Weighted average shares - basic | 47.2 | 48.7 | -3.2 % | |
Weighted average shares - diluted | 47.7 | 48.7 | -2.1 % | |
(a) Revenues from services include fees received from our franchise offices of | ||||
(b) The goodwill impairment charge for the three months ended December 31, 2023 is related to our investment in the | ||||
ManpowerGroup | ||||
Operating Unit Results | ||||
(In millions) | ||||
Three Months Ended December 31 | ||||
% Variance | ||||
Amount | Constant | |||
2024 | 2023(a) | Reported | Currency | |
(Unaudited) | ||||
Revenues from Services: | ||||
| ||||
United States (b) | $ 691.8 | $ 685.2 | 1.0 % | 1.0 % |
Other Americas | 381.8 | 389.4 | -2.0 % | 18.1 % |
1,073.6 | 1,074.6 | -0.1 % | 7.2 % | |
| ||||
| 1,134.5 | 1,209.7 | -6.2 % | -5.5 % |
| 418.7 | 415.1 | 0.9 % | 1.8 % |
Other Southern Europe | 490.2 | 487.0 | 0.7 % | 1.1 % |
2,043.4 | 2,111.8 | -3.2 % | -2.5 % | |
| 768.4 | 913.7 | -15.9 % | -16.4 % |
APME | 522.0 | 552.2 | -5.5 % | -4.0 % |
4,407.4 | 4,652.3 | |||
Intercompany Eliminations | (7.7) | (21.8) | ||
$ 4,399.7 | $ 4,630.5 | -5.0 % | -2.9 % | |
Operating Unit Profit (Loss): | ||||
| ||||
| $ 16.0 | $ 16.8 | -4.1 % | -4.1 % |
Other Americas | 18.3 | 19.1 | -4.8 % | 16.2 % |
34.3 | 35.9 | -4.5 % | 6.7 % | |
| ||||
| 36.7 | 46.0 | -20.1 % | -19.8 % |
| 24.3 | 30.7 | -20.5 % | -20.1 % |
Other Southern Europe | 14.2 | 14.1 | -0.7 % | -1.3 % |
75.2 | 90.8 | -17.2 % | -17.1 % | |
| (16.5) | (81.4) | 79.7 % | 78.3 % |
APME | 15.8 | 21.6 | -27.0 % | -28.3 % |
108.8 | 66.9 | |||
Corporate expenses | (32.5) | (42.9) | ||
Goodwill impairment charge (c) | - | (55.1) | ||
Intangible asset amortization expense | (8.1) | (8.4) | ||
Operating profit (loss) | 68.2 | (39.5) | 272.6 % | 280.2 % |
Interest and other expenses, net (d) | (20.5) | (15.5) | ||
Earnings (loss) before income taxes | $ 47.7 | $ (55.0) | ||
(a) Effective January 1, 2024, our segment reporting was realigned to include our | ||||
(b) In | ||||
(c) The goodwill impairment charge for the three months ended December 31, 2023 is related to our investment in | ||||
(d) The components of interest and other expenses, net were: | ||||
2024 | 2023 | |||
Interest expense | $ 23.0 | $ 20.0 | ||
Interest income | (8.9) | (9.7) | ||
Foreign exchange loss | 1.0 | 7.6 | ||
Miscellaneous loss (income) | 5.4 | (2.4) | ||
$ 20.5 | $ 15.5 | |||
ManpowerGroup | ||||
Results of Operations | ||||
(In millions, except per share data) | ||||
Year Ended December 31 | ||||
% Variance | ||||
Amount | Constant | |||
2024 | 2023 | Reported | Currency | |
(Unaudited) | ||||
Revenues from services (a) | $ 17,853.9 | $ 18,914.5 | -5.6 % | -3.4 % |
Cost of services | 14,767.1 | 15,556.5 | -5.1 % | -2.8 % |
Gross profit | 3,086.8 | 3,358.0 | -8.1 % | -6.2 % |
Selling and administrative expenses, | 2,780.8 | 3,047.1 | -8.7 % | -7.1 % |
Goodwill impairment charge (b) | - | 55.1 | N/A | N/A |
Selling and administrative expenses | 2,780.8 | 3,102.2 | -10.4 % | -8.8 % |
Operating profit | 306.0 | 255.8 | 19.6 % | 25.2 % |
Interest and other expenses, net | 49.2 | 49.9 | -1.5 % | |
Earnings before income taxes | 256.8 | 205.9 | 24.7 % | 31.1 % |
Provision for income taxes | 111.7 | 117.1 | -4.6 % | |
Net earnings | $ 145.1 | $ 88.8 | 63.5 % | 71.8 % |
Net earnings per share - basic | $ 3.04 | $ 1.78 | 70.4 % | |
Net earnings per share - diluted | $ 3.01 | $ 1.76 | 70.6 % | 79.3 % |
Weighted average shares - basic | 47.8 | 49.8 | -4.1 % | |
Weighted average shares - diluted | 48.3 | 50.4 | -4.2 % | |
(a) Revenues from services include fees received from our franchise offices of | ||||
(b) The goodwill impairment charge for the year ended December 31, 2023 is related to our investment | ||||
ManpowerGroup | ||||
Operating Unit Results | ||||
(In millions) | ||||
Year Ended December 31 | ||||
% Variance | ||||
Amount | Constant | |||
2024 | 2023(a) | Reported | Currency | |
(Unaudited) | ||||
Revenues from Services: | ||||
| ||||
United States (b) | $ 2,766.6 | $ 2,866.2 | -3.5 % | -3.5 % |
Other Americas | 1,458.3 | 1,548.6 | -5.8 % | 15.2 % |
4,224.9 | 4,414.8 | -4.3 % | 3.1 % | |
| ||||
| 4,618.4 | 4,867.1 | -5.1 % | -5.1 % |
| 1,677.0 | 1,708.8 | -1.9 % | -1.8 % |
Other Southern Europe | 1,922.9 | 1,939.4 | -0.9 % | 0.0 % |
8,218.3 | 8,515.3 | -3.5 % | -3.3 % | |
| 3,304.3 | 3,748.0 | -11.8 % | -12.9 % |
APME | 2,161.3 | 2,322.3 | -6.9 % | -2.3 % |
17,908.8 | 19,000.4 | |||
Intercompany Eliminations | (54.9) | (85.9) | ||
$ 17,853.9 | $ 18,914.5 | -5.6 % | -3.4 % | |
Operating Unit Profit (Loss): | ||||
| ||||
| $ 77.7 | $ 94.4 | -17.6 % | -17.6 % |
Other Americas | 63.9 | 71.2 | -10.3 % | 2.6 % |
141.6 | 165.6 | -14.5 % | -8.9 % | |
| ||||
| 151.8 | 188.3 | -19.4 % | -19.4 % |
| 113.1 | 124.7 | -9.3 % | -9.4 % |
Other Southern Europe | 39.2 | 44.7 | -12.5 % | -10.9 % |
304.1 | 357.7 | -15.0 % | -14.8 % | |
| (44.6) | (116.7) | 61.8 % | 60.9 % |
APME | 83.7 | 92.6 | -9.7 % | -3.7 % |
484.8 | 499.2 | |||
Corporate expenses | (146.1) | (153.7) | ||
Goodwill impairment charge (c) | - | (55.1) | ||
Intangible asset amortization expense | (32.7) | (34.6) | ||
Operating profit | 306.0 | 255.8 | 19.6 % | 25.2 % |
Interest and other expenses, net (d) | (49.2) | (49.9) | ||
Earnings before income taxes | $ 256.8 | $ 205.9 | ||
(a) Effective January 1, 2024, our segment reporting was realigned to include our | ||||
(b) In | ||||
(c) The goodwill impairment charge for the year ended December 31, 2023 is related to our investment in | ||||
(d) The components of interest and other expenses, net were: | ||||
2024 | 2023 | |||
Interest expense | $ 90.0 | $ 79.7 | ||
Interest income | (33.3) | (34.2) | ||
Foreign exchange loss | 6.2 | 21.8 | ||
Miscellaneous income | (13.7) | (17.4) | ||
$ 49.2 | $ 49.9 | |||
ManpowerGroup | |||
Consolidated Balance Sheets | |||
(In millions) | |||
Dec. 31, | Dec. 31, | ||
2024 | 2023 | ||
(Unaudited) | |||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 509.4 | $ 581.3 | |
Accounts receivable, net | 4,297.2 | 4,830.0 | |
Prepaid expenses and other assets | 163.7 | 160.8 | |
Total current assets | 4,970.3 | 5,572.1 | |
Other assets: | |||
Goodwill | 1,563.4 | 1,586.8 | |
Intangible assets, net | 486.1 | 519.6 | |
Operating lease right-of-use assets | 361.3 | 414.0 | |
Other assets | 701.5 | 607.8 | |
Total other assets | 3,112.3 | 3,128.2 | |
Property and equipment: | |||
Land, buildings, leasehold improvements and equipment | 488.2 | 526.5 | |
Less: accumulated depreciation and amortization | 369.8 | 396.6 | |
Net property and equipment | 118.4 | 129.9 | |
Total assets | $ 8,201.0 | $ 8,830.2 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 2,612.9 | $ 2,723.0 | |
Employee compensation payable | 241.1 | 243.1 | |
Accrued liabilities | 573.7 | 693.0 | |
Accrued payroll taxes and insurance | 615.2 | 695.8 | |
Value added taxes payable | 370.8 | 432.7 | |
Short-term borrowings and current maturities of long-term debt | 23.4 | 12.1 | |
Total current liabilities | 4,437.1 | 4,799.7 | |
Other liabilities: | |||
Long-term debt | 929.4 | 990.5 | |
Long-term operating lease liability | 279.0 | 323.2 | |
Other long-term liabilities | 428.6 | 482.7 | |
Total other liabilities | 1,637.0 | 1,796.4 | |
Shareholders' equity: | |||
ManpowerGroup shareholders' equity | |||
Common stock | 1.2 | 1.2 | |
Capital in excess of par value | 3,546.1 | 3,514.9 | |
Retained earnings | 3,812.3 | 3,813.0 | |
Accumulated other comprehensive loss | (443.0) | (466.0) | |
Treasury stock, at cost | (4,791.4) | (4,639.8) | |
Total ManpowerGroup shareholders' equity | 2,125.2 | 2,223.3 | |
Noncontrolling interests | 1.7 | 10.8 | |
Total shareholders' equity | 2,126.9 | 2,234.1 | |
Total liabilities and shareholders' equity | $ 8,201.0 | $ 8,830.2 | |
ManpowerGroup | |||
Consolidated Statements of Cash Flows | |||
(In millions) | |||
Year Ended | |||
December 31, | |||
2024 | 2023 | ||
(Unaudited) | |||
Cash Flows from Operating Activities: | |||
Net earnings | $ 145.1 | $ 88.8 | |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 86.6 | 88.6 | |
Loss on sales of subsidiaries, net | 8.2 | 1.3 | |
Non-cash goodwill and other impairment charges | - | 57.3 | |
Deferred income taxes | (32.4) | (20.6) | |
Provision for doubtful accounts | 9.0 | 5.4 | |
Share-based compensation | 27.3 | 28.7 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 261.1 | 391.8 | |
Other assets | (131.8) | (45.2) | |
Accounts payable | 15.7 | (144.7) | |
Other liabilities | (79.6) | (103.2) | |
Cash provided by operating activities | 309.2 | 348.2 | |
Cash Flows from Investing Activities: | |||
Capital expenditures | (51.1) | (78.2) | |
Acquisition of business, net of cash acquired | (4.9) | - | |
Impact to cash resulting from sales of subsidiaries | (14.6) | - | |
Proceeds from the sales of subsidiaries and property and equipment | 2.4 | 4.1 | |
Cash used in investing activities | (68.2) | (74.1) | |
Cash Flows from Financing Activities: | |||
Net change in short-term borrowings | 14.0 | (12.8) | |
Proceeds from long-term debt | 3.7 | 1.0 | |
Repayments of long-term debt | (1.6) | (4.4) | |
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 | (10.5) | (10.4) | |
Repurchases of common stock | (140.0) | (179.8) | |
Dividends paid | (145.8) | (144.3) | |
Cash used in financing activities | (282.4) | (349.5) | |
Effect of exchange rate changes on cash | (30.5) | 17.7 | |
Change in cash and cash equivalents | (71.9) | (57.7) | |
Cash and cash equivalents, beginning of period | 581.3 | 639.0 | |
Cash and cash equivalents, end of period | $ 509.4 | $ 581.3 | |
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SOURCE ManpowerGroup
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