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View All NewsManpowerGroup revenue up 9.8% in Q1; sells Russian business
First-quarter revenue at ManpowerGroup Inc. (NYSE: MAN) rose 9.8% in constant currency and was at the top end of guidance. US revenue rose 46.1%.
The Milwaukee-based global staffing giant reported the first quarter includes integration costs from its acquisition of ettain group and a net loss over the sale of its Russia business in January.
ManpowerGroup’s Russian business included operations in both Russia and Ukraine, and the company no longer employs people in either country. ManpowerGroup also reported it’s working with clients in Poland and surrounding countries to help them redesign roles to employ more refugees.
“Our first quarter results demonstrate very good execution of our strategic initiatives to improve our business mix and strong demand for our higher margin offerings,” Chairman and CEO Jonas Prising said. “Even with the tragic events unfolding in Ukraine we continue to see good growth opportunities overall for our staffing and workforce solutions services in Europe as well as globally.”
| (US$ millions) | Q1 2022 | Q1 2021 | % change | % constant currency |
| Revenue from services | $5,143.3 | $4,924.4 | 4.4% | 9.8% |
| Gross profit | $897.1 | $768.1 | 16.8% | 22.2% |
| Gross margin | 17.4% | 15.6% | ||
| Net earnings | $91.6 | $62.0 | 47.8% | 56.3% |
ManpowerGroup reported revenue grew 5% year over year on an organic basis in its Manpower division while Experis revenue rose 15% organically and in constant currency, and revenue in its Talent Solutions division was up 13% organically and in constant currency.
“Within Talent Solutions, we continue to see exceptional revenue growth in RPO and very strong revenue growth in MSP,” CFO Jack McGinnis said. “As we continue to experience a record low outplacement environment, Right Management saw double-digit percentage revenue decreases year over year.”
Revenue by geography
Looking at revenue by geography, US revenue jumped 46% year over year in the first quarter while the revenue trend in Canada was up 23% in constant currency. However, revenue from Mexico trended downward 61% in constant currency. The decline in Mexico was driven by legislation in the country that limits the use of staffing services.
| (US$ millions) | Q1 2022 | Q1 2021 | % change | % constant currency |
| Americas | ||||
| United States | $889.4 | $608.8 | 46.1% | 46.1% |
| Other Americas | $361.8 | $394.1 | -8.2% | -5.9% |
| Total Americas | $1,251.2 | $1,002.9 | 24.8% | 25.7% |
| Southern Europe | ||||
| France | $1,192.4 | $1,188.9 | 0.3% | 7.7% |
| Italy | $445.0 | $402.8 | 10.5% | 18.6% |
| Other Southern Europe | $556.5 | $568.6 | -2.1% | 2.7% |
| Total Southern Europe | $2,193.9 | $2,160.3 | 1.6% | 8.4% |
| Northern Europe | $1,094.5 | $1,133.8 | -3.5% | 2.0% |
| Asia Pacific Middle East | $618.2 | $627.4 | -1.5% | 6.0% |
“Although geopolitical uncertainty has increased, we continue to see strong hiring intentions in most of our major markets in Europe as well as globally,” Prising said in a conference call with analysts.
The effects of the pandemic are still noticeable in some markets where supply-side issues have led to pent up demand, he said. ManpowerGroup is seeing requests for skilled workers at record highs, especially in IT, finance and manufacturing operations. Some industries such as automotive have seen additional disruption to the Ukraine crisis, Prising added.
Guidance
For the second quarter, ManpowerGroup forecasts:
- Total revenue: down 2% to up 2% (up 6% to 10% in constant currency)
- Americas revenue: up 22% to 26% (up 24% to 28% in constant currency)
- Southern European revenue: down 2% to down 6% (up 3% to 7% in constant currency)
- Northern European revenue: down 8% to down 12% (flat to down 4% in constant currency)
- Asia Pacific Middle East revenue: flat to down 4% (up 3% to 7% in constant currency)
Share price and market cap
Shares in ManpowerGroup were up 5.64% to $93.77 as of 12:09 p.m. Eastern time; they were 11.21% above their 52-week low, according to FT.com. The company had a market cap of $4.68 billion.