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View All NewsManpowerGroup Q4 revenue down 5.2% in tough environment
Challenging environments continued in both Europe and the US, ManpowerGroup Inc. (NYSE: MAN) reported yesterday. Fourth-quarter revenue fell 5.2% in constant currency at the US-based global staffing firm to USD 4.63 billion.
“Our fourth-quarter and full-year results reflect a challenging operating environment in North America and Europe, while we continued to see solid demand across Latin America and Asia Pacific Middle East,” ManpowerGroup Chairman and CEO Jonas Prising said. “We are confident in our ability to navigate this kind of environment and ensure we are well positioned for profitable growth when demand improves.”
Revenue was in line with analyst estimates, however earnings per share missed analyst estimates by 64%.
The company reported a net loss in the fourth quarter. It noted the quarter included restructuring costs of $90.0 million, a non-cash goodwill impairment charge of $55.1 million, a software impairment charge of $2.2 million, and a non-cash currency translation charge of $6.7 million related to hyperinflationary Argentina. ManpowerGroup also sold its Philippines business in September 2023. Excluding the net impact of these charges, earnings per share for the year was $6.04 per diluted share representing a decrease of 28% in constant currency.
| (USD millions) | Q4 2023 | Q4 2022 | % change | % constant currency |
| Revenue from services | 4,630.5 | 4,809.2 | -3.7% | -5.2% |
| Gross profit | 810.7 | 875.6 | -7.4% | -8.7% |
| Gross margin | 17.5% | 18.2% | - | - |
| Net earnings | -84.5 | 48.7 | - | -257.7% |
Revenue by Geography
On a constant currency basis, particular weakness in the US, Canada, UK, Switzerland, Nordics and Australia was partially offset by revenue growth in Japan, Belgium, Germany and Latin America.
| (USD millions) | Q4 2023 | Q4 2022 | % change | % constant currency |
| United States | 702.3 | 819.4 | -14.3% | -14.3% |
| Other Americas | 372.3 | 362.6 | 2.7% | 17.7% |
| Total Americas | 1,074.6 | 1,182.0 | -9.1% | -4.5% |
| (USD millions) | Q4 2023 | Q4 2022 | % change | % constant currency |
| France | 1,209.9 | 1,194.9 | 1.2% | -4.1% |
| Italy | 415.1 | 412.5 | 0.6% | -4.6% |
| Other Southern Europe | 487.0 | 493.8 | -1.4% | -3.7% |
| Total Southern Europe | 2,111.8 | 2,101.2 | 0.5% | -4.1% |
| (USD millions) | Q4 2023 | Q4 2022 | % change | % constant currency |
| Northern Europe | 913.7 | 972.6 | -6.1% | -10.1% |
| Asia Pacific Middle East | 552.2 | 578.5 | -4.5% | -2.7% |
| Intercompany eliminations | -21.8 | -25.1 | - | - |
| Total | 4,630.5 | 4,809.2 | -3.7% | -5.2% |
Full year
| (USD millions) | FY 2023 | Q4 2022 | % change | % constant currency |
| Revenue | 18,914.5 | 19,827.5 | -4.6% | -4.0% |
| Gross profit | 3,358.0 | 3,572.4 | -6.0% | -5.5% |
| Gross margin | 17.8% | 18.0% | - | - |
| Net earnings | 88.8 | 373.8 | -76.3% | -74.3% |
By business line, Manpower revenue fell 3% year over year on a constant currency and organic basis in the fourth quarter. The rate of decline was stable from the third-quarter trend.
Experis revenue fell 11% year over year on a constant currency and organic basis in the fourth quarter. The rate of decline increased slightly from the third-quarter trend. Enterprise clients had the most pronounced impact on the decreasing trend in the fourth quarter.
Talent solutions revenue fell 14% on a constant currency and organic basis in the fourth quarter with the decline driven by RPO and MSP, which was partially offset by growth in Right Management. RPO and MSP experienced steady revenue trends from the third quarter.
Looking ahead, ManpowerGroup issued the following forecasts for the first quarter of 2024:
- Total revenue to be down between 5% and 9% (down between 4% and 8% in constant currency)
- Americas revenue to be down between 6% and 10% (down between 3% to up 1% in constant currency)
- Southern Europe revenue to be down between 2% and 6% (down between 3% and 7% in constant currency)
- Northern Europe revenue to be down between 8% and 12% (down between 11% and 15% in constant currency)
- Asia Pacific Middle East revenue to be down between 10% and 14% (down between 5% and 9% in constant currency)
- Gross profit margin, to be between 17.2% and 17.4%
ManpowerGroup shares closed yesterday at $77.06, up 0.73% on the day and 14.42% above the 52-week low of $67.35 set on 19 October 2023. The company has a market cap of $3.73 billion.