ManpowerGroup Reports 2nd Quarter 2024 Results
ManpowerGroup (NYSE: MAN) reported its Q2 2024 results with revenues of $4.5 billion, a 7% decrease (3% in constant currency) from the prior year. Net earnings were $60.1 million or $1.24 per diluted share, compared to $65.2 million or $1.29 per share in Q2 2023. Excluding losses from Proservia Germany, earnings were $1.30 per share.
The company faced a challenging environment in North America and Europe, while experiencing solid demand in Latin America and Asia-Pacific. Gross profit margin was 17.4%, with staffing margins remaining solid. SG&A costs were reduced by 9% (7% in constant currency). ManpowerGroup repurchased $27 million of common stock during the quarter.
For Q3 2024, the company anticipates diluted earnings per share between $1.25 and $1.35, including an estimated unfavorable currency impact of 5 cents.
- Solid demand in Latin America and Asia-Pacific regions
- Gross profit margin maintained at 17.4%
- SG&A costs reduced by 9% (7% in constant currency)
- $27 million of common stock repurchased
- Revenues decreased by 7% (3% in constant currency) to $4.5 billion
- Net earnings declined to $60.1 million from $65.2 million year-over-year
- Earnings per share decreased to $1.24 from $1.29 year-over-year
- Challenging environment in North America and Europe
- Permanent recruitment activity softened further from the previous quarter
Insights
ManpowerGroup's Q2 2024 financial results highlight several critical points that investors need to be aware of. The
One of the key metrics is the earnings per share (EPS), which stood at
Moreover, the reduction in SG&A expenses by
For retail investors, the mixed signals from different regions are noteworthy. While North America and Europe are facing challenges, solid demand in Latin America and Asia-Pacific may offer some resilience. Yet, the overall global economic uncertainty remains a concern for future performance.
Examining ManpowerGroup's market dynamics, a
The permanent recruitment slowdown is worth watching closely. This decline points to companies' hesitancy to make long-term commitments in an uncertain economic climate. Despite this, stable staffing and solutions activities suggest a balanced approach to workforce management by clients.
Investors should consider the potential upsides and downsides of this mixed regional performance. While strong demand in emerging markets offers growth opportunities, the persistent weaknesses in key developed markets could weigh on overall performance. The company's strategic initiatives and cost-balancing efforts are crucial, but continued vigilance is required regarding regional economic trends.
- Revenues of
$4.5 billion 7% as reported, -3% constant currency) - Continuation of challenging environment in
North America andEurope during the quarter, solid demand inLatin America andAsia-Pacific region - Gross profit margin of
17.4% . Staffing margins remained solid; permanent recruitment levels stepped down slightly from the previous quarter - SG&A reduced further during the quarter (-
9% as reported, -7% constant currency, -5% constant currency as adjusted1) $27 million
The quarter included final run-off losses related to the Proservia Germany business. These losses reduced earnings per share by
Financial results in the quarter were also impacted by the U.S. dollar relative to foreign currencies compared to the prior year period. The second quarter earnings per share guidance estimated a negative
Jonas Prising, ManpowerGroup Chairman & CEO, said, "Employers in
We anticipate diluted earnings per share in the third quarter will be between
Net earnings for the six months ended June 30, 2024 were
In conjunction with its second quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on July 18, 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, 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 in the prior year and Proservia Germany run-off costs in the current year.
2 The prior year period included restructuring costs and
3 The prior year period included restructuring costs and
ManpowerGroup | ||||
Results of Operations | ||||
(In millions, except per share data) | ||||
Three Months Ended June 30 | ||||
% Variance | ||||
Amount | Constant | |||
2024 | 2023 | Reported | Currency | |
(Unaudited) | ||||
Revenues from services (a) | $ 4,520.7 | $ 4,856.1 | -6.9 % | -3.5 % |
Cost of services | 3,734.8 | 3,993.8 | -6.5 % | -3.0 % |
Gross profit | 785.9 | 862.3 | -8.9 % | -5.7 % |
Selling and administrative expenses | 684.8 | 754.7 | -9.3 % | -6.5 % |
Operating profit | 101.1 | 107.6 | -6.1 % | -0.1 % |
Interest and other expenses, net | 8.7 | 11.8 | -26.3 % | |
Earnings before income taxes | 92.4 | 95.8 | -3.6 % | 2.8 % |
Provision for income taxes | 32.3 | 30.6 | 5.6 % | |
Net earnings | $ 60.1 | $ 65.2 | -7.8 % | -1.8 % |
Net earnings per share - basic | $ 1.25 | $ 1.30 | -3.5 % | |
Net earnings per share - diluted | $ 1.24 | $ 1.29 | -3.6 % | 2.8 % |
Weighted average shares - basic | 47.9 | 50.2 | -4.5 % | |
Weighted average shares - diluted | 48.4 | 50.7 | -4.4 % | |
(a) Revenues from services include fees received from our franchise offices of | ||||
ManpowerGroup | ||||
Operating Unit Results | ||||
(In millions) | ||||
Three Months Ended June 30 | ||||
% Variance | ||||
Amount | Constant | |||
2024 | 2023(a) | Reported | Currency | |
(Unaudited) | ||||
Revenues from Services: | ||||
| ||||
United States (b) | $ 697.0 | $ 709.1 | -1.7 % | -1.7 % |
Other Americas | 367.4 | 389.6 | -5.7 % | 17.1 % |
1,064.4 | 1,098.7 | -3.1 % | 5.0 % | |
| ||||
| 1,184.9 | 1,278.2 | -7.3 % | -6.2 % |
| 434.9 | 457.8 | -5.0 % | -3.9 % |
Other Southern Europe | 478.2 | 490.9 | -2.6 % | 0.0 % |
2,098.0 | 2,226.9 | -5.8 % | -4.4 % | |
| 837.3 | 952.5 | -12.1 % | -12.0 % |
APME | 541.4 | 599.4 | -9.7 % | -2.0 % |
4,541.1 | 4,877.5 | |||
Intercompany Eliminations | (20.4) | (21.4) | ||
$ 4,520.7 | $ 4,856.1 | -6.9 % | -3.5 % | |
Operating Unit Profit (Loss): | ||||
| ||||
| $ 27.4 | $ 23.1 | 18.7 % | 18.7 % |
Other Americas | 17.7 | 20.1 | -12.1 % | 2.0 % |
45.1 | 43.2 | 4.4 % | 10.9 % | |
| ||||
| 40.3 | 49.5 | -18.5 % | -17.6 % |
| 34.0 | 36.3 | -6.3 % | -5.2 % |
Other Southern Europe | 8.9 | 6.8 | 28.3 % | 33.5 % |
83.2 | 92.6 | -10.3 % | -9.0 % | |
| (2.4) | (9.7) | 75.6 % | 73.1 % |
APME | 25.0 | 25.7 | -2.0 % | 8.2 % |
150.9 | 151.8 | |||
Corporate expenses | (41.7) | (35.5) | ||
Intangible asset amortization expense | (8.1) | (8.7) | ||
Operating profit | 101.1 | 107.6 | -6.1 % | -0.1 % |
Interest and other expenses, net (c) | (8.7) | (11.8) | ||
Earnings before income taxes | $ 92.4 | $ 95.8 | ||
(a) Effective January 1, 2024, our segment reporting was realigned to include our | ||||
(b) In | ||||
(c) The components of interest and other expenses, net were: | ||||
2024 | 2023 | |||
Interest expense | $ 22.0 | $ 20.0 | ||
Interest income | (8.6) | (8.4) | ||
Foreign exchange loss | 1.8 | 5.1 | ||
Miscellaneous income | (6.5) | (4.9) | ||
$ 8.7 | $ 11.8 | |||
ManpowerGroup | ||||
Results of Operations | ||||
(In millions, except per share data) | ||||
Six Months Ended June 30 | ||||
% Variance | ||||
Amount | Constant | |||
2024 | 2023 | Reported | Currency | |
(Unaudited) | ||||
Revenues from services (a) | $ 8,924.0 | $ 9,608.4 | -7.1 % | -4.5 % |
Cost of services | 7,374.4 | 7,883.0 | -6.5 % | -3.7 % |
Gross profit | 1,549.6 | 1,725.4 | -10.2 % | -7.9 % |
Selling and administrative expenses | 1,382.6 | 1,499.9 | -7.8 % | -5.8 % |
Operating profit | 167.0 | 225.5 | -25.9 % | -21.9 % |
Interest and other expenses, net | 17.1 | 19.3 | -11.4 % | |
Earnings before income taxes | 149.9 | 206.2 | -27.3 % | -23.0 % |
Provision for income taxes | 50.1 | 63.2 | -20.7 % | |
Net earnings | $ 99.8 | $ 143.0 | -30.2 % | -26.0 % |
Net earnings per share - basic | $ 2.07 | $ 2.84 | -26.9 % | |
Net earnings per share - diluted | $ 2.05 | $ 2.80 | -26.8 % | -22.5 % |
Weighted average shares - basic | 48.1 | 50.4 | -4.6 % | |
Weighted average shares - diluted | 48.7 | 51.0 | -4.6 % | |
(a) Revenues from services include fees received from our franchise offices of | ||||
ManpowerGroup | ||||
Operating Unit Results | ||||
(In millions) | ||||
Six Months Ended June 30 | ||||
% Variance | ||||
Amount | Constant | |||
2024 | 2023(a) | Reported | Currency | |
(Unaudited) | ||||
Revenues from Services: | ||||
| ||||
United States (b) | $ 1,377.4 | $ 1,450.7 | -5.1 % | -5.1 % |
Other Americas | 723.4 | 778.2 | -7.0 % | 14.8 % |
2,100.8 | 2,228.9 | -5.7 % | 1.9 % | |
| ||||
| 2,304.2 | 2,447.5 | -5.9 % | -5.8 % |
| 839.2 | 880.0 | -4.6 % | -4.6 % |
Other Southern Europe | 935.9 | 967.3 | -3.3 % | -1.6 % |
4,079.3 | 4,294.8 | -5.0 % | -4.6 % | |
| 1,707.6 | 1,920.1 | -11.1 % | -12.1 % |
APME | 1,076.5 | 1,205.3 | -10.7 % | -3.4 % |
8,964.2 | 9,649.1 | |||
Intercompany Eliminations | (40.2) | (40.7) | ||
$ 8,924.0 | $ 9,608.4 | -7.1 % | -4.5 % | |
Operating Unit Profit (Loss): | ||||
| ||||
| $ 39.4 | $ 53.1 | -25.9 % | -25.9 % |
Other Americas | 31.8 | 38.7 | -17.8 % | -6.3 % |
71.2 | 91.8 | -22.5 % | -17.6 % | |
| ||||
| 73.4 | 94.4 | -22.2 % | -22.2 % |
| 61.4 | 67.0 | -8.3 % | -8.2 % |
Other Southern Europe | 18.3 | 21.1 | -13.7 % | -10.6 % |
153.1 | 182.5 | -16.1 % | -15.7 % | |
| (2.4) | (4.7) | 49.4 % | 35.0 % |
APME | 44.9 | 46.8 | -3.8 % | 6.0 % |
266.8 | 316.4 | |||
Corporate expenses | (83.4) | (73.4) | ||
Intangible asset amortization expense | (16.4) | (17.5) | ||
Operating profit | 167.0 | 225.5 | -25.9 % | -21.9 % |
Interest and other expenses, net (c) | (17.1) | (19.3) | ||
Earnings before income taxes | $ 149.9 | $ 206.2 | ||
(a) Effective January 1, 2024, our segment reporting was realigned to include our | ||||
(b) In | ||||
(c) The components of interest and other expenses, net were: | ||||
2024 | 2023 | |||
Interest expense | $ 42.4 | $ 38.7 | ||
Interest income | (16.7) | (16.5) | ||
Foreign exchange loss | 4.2 | 8.2 | ||
Miscellaneous income | (12.8) | (11.1) | ||
$ 17.1 | $ 19.3 | |||
ManpowerGroup | |||
Consolidated Balance Sheets | |||
(In millions) | |||
Jun. 30, | Dec. 31, | ||
2024 | 2023 | ||
(Unaudited) | |||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 468.9 | $ 581.3 | |
Accounts receivable, net | 4,595.7 | 4,830.0 | |
Prepaid expenses and other assets | 168.7 | 160.8 | |
Total current assets | 5,233.3 | 5,572.1 | |
Other assets: | |||
Goodwill | 1,573.2 | 1,586.8 | |
Intangible assets, net | 499.8 | 519.6 | |
Operating lease right-of-use assets | 381.5 | 414.0 | |
Other assets | 643.7 | 607.8 | |
Total other assets | 3,098.2 | 3,128.2 | |
Property and equipment: | |||
Land, buildings, leasehold improvements and equipment | 513.7 | 526.5 | |
Less: accumulated depreciation and amortization | 391.6 | 396.6 | |
Net property and equipment | 122.1 | 129.9 | |
Total assets | $ 8,453.6 | $ 8,830.2 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 2,589.5 | $ 2,723.0 | |
Employee compensation payable | 221.3 | 243.1 | |
Accrued liabilities | 572.2 | 693.0 | |
Accrued payroll taxes and insurance | 656.8 | 695.8 | |
Value added taxes payable | 401.4 | 432.7 | |
Short-term borrowings and current maturities of long-term debt | 136.8 | 12.1 | |
Total current liabilities | 4,578.0 | 4,799.7 | |
Other liabilities: | |||
Long-term debt | 961.7 | 990.5 | |
Long-term operating lease liability | 294.8 | 323.2 | |
Other long-term liabilities | 473.2 | 482.7 | |
Total other liabilities | 1,729.7 | 1,796.4 | |
Shareholders' equity: | |||
ManpowerGroup shareholders' equity | |||
Common stock | 1.2 | 1.2 | |
Capital in excess of par value | 3,524.3 | 3,514.9 | |
Retained earnings | 3,839.3 | 3,813.0 | |
Accumulated other comprehensive loss | (500.4) | (466.0) | |
Treasury stock, at cost | (4,727.5) | (4,639.8) | |
Total ManpowerGroup shareholders' equity | 2,136.9 | 2,223.3 | |
Noncontrolling interests | 9.0 | 10.8 | |
Total shareholders' equity | 2,145.9 | 2,234.1 | |
Total liabilities and shareholders' equity | $ 8,453.6 | $ 8,830.2 | |
ManpowerGroup | |||
Consolidated Statements of Cash Flows | |||
(In millions) | |||
Six Months Ended | |||
June 30, | |||
2024 | 2023 | ||
(Unaudited) | |||
Cash Flows from Operating Activities: | |||
Net earnings | $ 99.8 | $ 143.0 | |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 43.0 | 42.6 | |
Deferred income taxes | 7.8 | 14.3 | |
Provision for doubtful accounts | 3.7 | 2.9 | |
Share-based compensation | 15.0 | 12.0 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 107.9 | 186.3 | |
Other assets | (70.1) | (63.2) | |
Other liabilities | (229.0) | (369.1) | |
Cash used in operating activities | (21.9) | (31.2) | |
Cash Flows from Investing Activities: | |||
Capital expenditures | (23.7) | (34.6) | |
Proceeds from the sales of subsidiaries and property and equipment | 2.1 | 0.1 | |
Cash used in investing activities | (21.6) | (34.5) | |
Cash Flows from Financing Activities: | |||
Net change in short-term borrowings | 49.2 | (9.5) | |
Net proceeds from revolving debt facility | 76.0 | 4.0 | |
Proceeds from long-term debt | 0.5 | 0.4 | |
Repayments of long-term debt | (1.0) | (0.5) | |
Payments of contingent consideration for acquisitions | (2.8) | - | |
Proceeds from share-based awards | 0.7 | 1.7 | |
Payments to noncontrolling interests | (0.2) | (0.6) | |
Other share-based award transactions | (10.5) | (9.8) | |
Repurchases of common stock | (77.0) | (79.9) | |
Dividends paid | (73.5) | (73.1) | |
Cash used in financing activities | (38.6) | (167.3) | |
Effect of exchange rate changes on cash | (30.3) | 1.6 | |
Change in cash and cash equivalents | (112.4) | (231.4) | |
Cash and cash equivalents, beginning of period | 581.3 | 639.0 | |
Cash and cash equivalents, end of period | $ 468.9 | $ 407.6 | |
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SOURCE ManpowerGroup
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