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View All NewsManpowerGroup Q3 revenue up 11%; economy recovering with supply chain and Covid continuing concerns
ManpowerGroup Inc. (NYSE: MAN) reported third-quarter revenue rose 11.4% on a constant currency basis as the global economy continues to recover, though supply chain difficulties and Covid-19 remain concerns.
Gross margin at the Milwaukee-based staffing giant improved to 16.6% in the third quarter from 15.8% in the year-ago quarter.
“Our third quarter results reflect a continued global economic recovery, tempered by supply chain constraints and the ongoing impact of the Delta variant in various key markets,” ManpowerGroup Chairman and CEO Jonas Prising said. “Global demand remained strong as our clients continue to look for skilled talent in a tight labor market and leverage our capabilities and workforce solutions expertise that help them achieve their desired business outcomes.”
| (US$ millions) | Q3 2021 | Q3 2020 | % change | % constant currency |
| Revenue from services | $5,140.6 | $4,584.8 | 12.1% | 11.0% |
| Gross profit | $853.0 | $725.1 | 17.6% | 16.8% |
| Gross margin | 16.6% | 15.8% | ||
| Net earnings | $97.7 | $10.3 | 848.9% | 845.3% |
ManpowerGroup also reported its Talent Solutions segment experienced double-digit growth, exceeding pre-pandemic levels, led by strength in its RPO offerings along with ongoing strength in MSP.
The third quarter of this year includes restructuring costs for its Mexico business of $5.3 million and ettain group acquisition costs of $6.2 million. ManpowerGroup announced earlier this month that it closed its acquisition of IT staffing provider ettain group.
Meanwhile, a new law impacting the staffing industry in Mexico recently went into effect. In its earnings report today, ManpowerGroup said the average daily revenue trend in Mexico was down 46% in the third quarter.
The second quarter of 2020 had restructuring charges of $49.9 million.
Revenue by geography
| (US$ millions) | Q3 2021 | Q3 2020 | % change | % constant currency |
| Americas | ||||
| United States | $644.9 | $578.8 | 11.4% | 11.4% |
| Other Americas | $352.7 | $350.3 | 0.7% | 1.7% |
| Total Americas | $997.6 | $929.1 | 7.4% | 7.7% |
| Southern Europe | ||||
| France | $1,317.0 | $1,205.3 | 9.3% | 8.3% |
| Italy | $456.4 | $351.2 | 30.0% | 28.8% |
| Other Southern Europe | $609.2 | $555.9 | 9.6% | 8.1% |
| Total Southern Europe | $2,382.6 | $2,112.4 | 12.8% | 11.7% |
| Northern Europe | $1,166.6 | $947.7 | 23.1% | 19.2% |
| Asia Pacific Middle East | $611.2 | $595.6 | 2.6% | 4.0% |
Guidance
For the fourth quarter, ManpowerGroup forecast:
- Total revenue to be up 3% to 7% (an increase of 5% to 9% in constant currency)
- Americas revenue to be up 13% to 17% (an increase of 14% to 18% in constant currency)
- Southern Europe revenue to be flat to up 4% (an increase of 2% to 6% in constant currency)
- Northern Europe revenue to be up 8% to 12% (an increase of 8% to 12% in constant currency)
- Asia Pacific Middle East revenue to be down 4% to flat (flat to up 4% in constant currency)
- Gross profit margin to be between 16.6% and 16.8%
Share price and market cap
Shares in ManpowerGroup were down 6.31% to $105.99 as of 12:31 p.m. Eastern time in New York; they were 15.26% below their 52-week high. The company had a market cap of $6.14 billion.