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View All NewsWorld – ManpowerGroup Q1 revenue up 7% in constant currency, boosted by European growth
First-quarter revenue at ManpowerGroup Inc. (NYSE: MAN) rose 6.7% in constant currency and was up 3.7% on a reported basis for the first quarter ended 31 March 2017.
| (USD millions) | Q1 2017 | Q1 2016 | % growth | % constant currency | Q1 2017 (in euros) |
| Revenue | 4,757.2 | 4,587.7 | 3.7% | 6.7% | 4,430.7 |
| Gross profit | 787.8 | 773.8 | 1.8% | 4.5% | 733.7 |
| Gross margin | 16.6% | 16.9% | N/A | N/A | N/A |
| Net earnings | 74.4 | 71.7 | 3.8% | 6.5% | 69.3 |
The company noted a continued slow-growth environment but improving economic and labour market outlook in many parts of the world, including Europe. Revenue in France rose 9.3% on a constant-currency basis. Northern Europe revenue rose 8.8%.
Revenue by geography is broken down as follows:
| (USD millions) | Q1 2017 | Q1 2016 | % growth | % constant currency | Q1 2017 (in euros) |
| Americas | |||||
| United States | 661.5 | 703.1 | -5.9% | -5.9% | 616.1 |
| Other Americas | 364.7 | 342.8 | 6.4% | 8.5% | 339.7 |
| Total Americas | 1,026.2 | 1,045.9 | -1.9% | -1.2% | 955.8 |
| Southern Europe | |||||
| France | 1,137.5 | 1,078.8 | 5.4% | 9.3% | 1,059.4 |
| Italy | 294.4 | 263.1 | 11.9% | 16.0% | 274.2 |
| Other Southern Europe | 372.0 | 345.8 | 7.6% | 9.8% | 346.5 |
| Total Southern Europe | 1,803.9 | 1,687.7 | 6.9% | 10.4% | 1,680.1 |
| Northern Europe | 1,238.7 | 1,213.9 | 2.0% | 8.8% | 1,153.7 |
| Asia Pacific Middle East | 632.4 | 576.2 | 9.7% | 7.8% | 589.0 |
| Right Management | 56.0 | 64.0 | -12.5% | -10.5% | 52.2 |
“The strong first-quarter results are very encouraging, and build on the progress we made last year,” Chairman and CEO Jonas Prising said. “We are seeing further broad-based improvement in Europe, setting the stage for what we believe could be a slow but sustained labour market recovery in that region. Our workforce services and solutions are resonating with our clients and candidates, which gives us the confidence that we are on the right track and well placed to seize further opportunities during 2017.”
Gross Profit broken down by business line shows that ManpowerGroupSolutions, the RPO/MSP business of ManpowerGroup, grew by 12% in constant currency and 11% in reported growth. Total gross profit was $105 million in Q1 2017. It was the largest growth area for ManpowerGroup by segment and now represents 13% of ManpowerGroup gross profit, up from 12% last year.
The Manpower business grew by 4% in constant currency and 1% in reported terms to $479 million in Q1. It represents 61% of total gross profit. Meanwhile, Experis grew by 6% in constant currency and 3% in reported terms to $168 million and accounted for 21% of total gross profit. Right Management gross profit fell by 12% in constant currency and 14% in reported terms, to $36 million. Right Management represents 5% of ManpowerGroup gross profit.
ManpowerGroup also published full-year results as follows:
| (USD millions) | 2016 | 2016 | % growth | % constant currency |
| Revenue | $19,654.1 | $19,329.9 | 1.7% | 4.1% |
| Gross profit | $3,333.8 | $3,295.8 | 1.2% | 3.3% |
| Gross margin | 17.0% | 17.1% | N/A | N/A |
| Net earnings | $443.7 | $419.2 | 5.8% | 8.4% |
ManpowerGroup forecast second-quarter revenue to range from flat to down 2% on a year-over-year basis. In constant currency, the company expects revenue to increase between 3% and 5%.
Second-quarter revenue guidance by region:
Americas, flat to down 2% (down 1% to up 1% in constant currency)
Southern Europe, up 2% to 4% (up 7% to 9% in constant currency)
Northern Europe, down 6% to 8% (flat to up 2% in constant currency)
Asia Pacific Middle East, up 5% to 7% (up 6% to 8% in constant currency)
Right Management, down 13% to 15% (down 10% to 12% in constant currency)
Second-quarter gross margin is forecast to be between 16.7% and 16.9%.
On Friday, ManpowerGroup Inc shares closed at $100.34, down 2.89% on the day and 3.43% below its 52-week high of $103.90, set on 17 March 2017. Based on its share price the company has a market value of $6.79 billion.