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View All NewsManpowerGroup fourth-quarter revenue up 9.5%, reports growth in higher-margin business
ManpowerGroup Inc. (NYSE: MAN), which ranks among the world’s largest staffing firms, reported revenue rose 9.5% on a constant currency basis in the fourth quarter. US revenue rose 38.5%. Gross margin improved.
Fourth-quarter results reflect good growth in higher margin offerings and an improved business mix, Chairman and CEO Jonas Prising said.
The quarter includes ManpowerGroup’s purchase of IT staffing firm ettain group, which had ranked as one of the largest IT staffing providers in the US. Also today, ManpowerGroup announced the sale of its Russian business, which will operate as a franchise going forward.
“The acquisition of ettain is already enhancing the contribution of our IT resourcing capabilities in our Experis business,” Prising said. “Talent Solutions delivered strong overall growth with record revenue levels in RPO and MSP during 2021. Ongoing initiatives in the Manpower business are driving significant year-over-year gross profit margin growth.”
| (US$ millions) | Q4 2021 | Q4 2020 | % change | % constant currency |
| Revenue from services | $5,382.3 | $5,054.9 | 6.5% | 9.5% |
| Gross profit | $926.3 | $798.9 | 15.9% | 18.8% |
| Gross margin | 17.2% | 15.8% | ||
| Net earnings | $111.1 | $76.2 | 45.7% | 48.3% |
Revenue by geography
| (US$ millions) | Q4 2021 | Q4 2020 | % change | % constant currency |
| Americas | ||||
| United States | $860.8 | $621.6 | 38.5% | 38.5% |
| Other Americas | $358.1 | $394.1 | -9.2% | -5.0% |
| Total Americas | $1,218.9 | $1,015.7 | 20.0% | 21.6% |
| Southern Europe | ||||
| France | $1,318.6 | $1,303.0 | 1.2% | 5.5% |
| Italy | $467.1 | $423.3 | 10.3% | 15.2% |
| Other Southern Europe | $595.8 | $601.0 | -0.8% | 1.3% |
| Total Southern Europe | $2,381.5 | $2,327.3 | 2.3% | 6.2% |
| Northern Europe | $1,179.6 | $1,094.8 | 7.7% | 8.6% |
| Asia Pacific Middle East | $622.6 | $617.1 | 0.9% | 6.9% |
ManpowerGroup expects an $8 million loss on the sale of its Russian business.
Full-year results
| (US$ millions) | FY 2021 | FY 2020 | % change | % constant currency |
| Revenue | $20,724.4 | $18,001.0 | 15.1% | 12.1% |
| Gross profit | $3,407.5 | $2,824.7 | 20.6% | 17.9% |
| Gross margin | 16.4% | 15.7% | ||
| Net earnings | $382.4 | $23.8 | 1504.6% | 1465.2% |
A goodwill impairment charge of $66.8 million for full-year 2020 relates to the company’s investment in Germany.
Guidance
For the first quarter, ManpowerGroup forecasts:
- Total revenue to be up between 1% and 5% (up 6% to 10% in constant currency)
- Americas revenue to be up between 16% and 20% (up 18% to 22% in constant currency)
- Southern Europe revenue to be up between 1% and 5% (up 7% to 11% in constant currency)
- Northern Europe revenue to be down between 2% and 6% (down 1% to up 3% in constant currency)
- Asia Pacific Middle East revenue to be down between 4% and 8% (down 2% to up 2% in constant currency)
- Gross profit margin to be between 16.9% and 17.1%
Share price and market cap
Shares in ManpowerGroup were up 3.25% to $108.28 as of 11:23 a.m. Eastern time; they were 13.42% below their 52-week high, according to FT.com. The company had a market cap of $5.69 billion.