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View All NewsManpowerGroup reports continuing revenue recovery during Q4, points to stronger market environment
ManpowerGroup Inc. (NYSE: MAN) reported monthly improvement in year-over-year revenue trends during the fourth quarter. The Milwaukee-based staffing giant also noted its talent solutions operations crossed over to revenue growth in the quarter with MSP and Right Management leading the way.
Overall, ManpowerGroup’s revenue fell 2.7% year over year on a reported basis and was down 6.5% in constant currency. However, this compares to the 14.5% (constant currency) decline in the third quarter.
“Our fourth quarter results reflect a continuation of the revenue recovery that began in May 2020,” Chairman and CEO Jonas Prising said. “Despite experiencing a series of ongoing lockdowns around the world during the fourth quarter, our results reflect a stronger market environment, including revenue growth and new opportunities in select markets.”
| (US$ millions) | Q4 2020 | Q4 2019 | % change | % constant currency |
| Revenue | $5,054.9 | $5,196.6 | -2.7% | -6.5% |
| Gross profit | $798.9 | $859.6 | -7.1% | -10.4% |
| Gross margin | 15.8% | 16.5% | ||
| Net earnings/ loss | $76.2 | $138.8 | -45.1% | -46.9% |
US revenue was down 4.1% in the fourth quarter while revenue in ManpowerGroup’s largest single market, France, was down 4.3% on a reported basis and 11.2% on a constant currency basis.
Revenue by geography
| (US$ millions) | Q4 2020 | Q4 2019 | % change | % constant currency |
| Americas | ||||
| United States | $621.6 | $648.3 | -4.1% | -4.1% |
| Other Americas | $394.1 | $437.4 | -9.8% | -2.5% |
| Total Americas | $1,015.7 | $1,085.7 | -6.4% | -3.5% |
| Southern Europe | ||||
| France | $1,303.0 | $1,361.8 | -4.3% | -11.2% |
| Italy | $423.3 | $380.6 | 11.2% | 3.3% |
| Other Southern Europe | $601.0 | $591.1 | 1.7% | -4.7% |
| Total Southern Europe | $2,327.3 | $2,333.5 | -0.3% | -7.2% |
| Northern Europe | $1,094.8 | $1,174.1 | -6.7% | -10.6% |
| Asia Pacific Middle East | $617.1 | $603.3 | 2.2% | -0.9% |
Gross profit was down 7% year over year in the fourth quarter on a reported basis, compared to a decline of 13.7% in the third quarter. However, ManpowerGroup noted that gross profit rose 3% on a reported basis in its talent solutions business, which includes RPO, MSP and Right Management.
Net income was affected by restructuring charges of $12.6 million in the fourth quarter.
Full-year results
| (US$ millions) | FY 2020 | FY 2019 | % change | % constant currency |
| Revenue | $18,001.0 | $20,863.5 | -13.7% | -13.9% |
| Gross profit | $2,824.7 | $3,375.1 | -16.3% | -16.5% |
| Gross margin | 15.7% | 16.2% | ||
| Net earnings | $23.8 | $465.7 | -94.9% | -94.9% |
Guidance
For the first quarter, ManpowerGroup expects:
- Total revenue: Flat to up 2% (down 4% to 6% in constant currency)
- Americas revenue: Down 5% to 7% (down 3% to 5% in constant currency)
- Southern Europe: Up 6% to 8% (down 2% to 4% in constant currency)
- Northern Europe: Down 1% to 3% (down 9% to 11% in constant currency)
- Asia Pacific Middle East: Up 3% to 5% (down 1% to 3% in constant currency)
Share price and market cap
Shares in ManpowerGroup were down 3.33% to $86.78 as of 1:13 p.m. Eastern time; they were 11.36% below their 52-week high, according to FT.com. The company had a market cap of $5.16 billion.