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View All NewsWorld – ManpowerGroup Q3 revenue rises 4%
Third-quarter revenue rose 4.3% in constant currency at ManpowerGroup (NYSE: MAN) with French revenue, the company’s single biggest geography, up 10.2% in constant currency and Italian revenue up 22.7%.
| (USD millions) | Q3 2017 | Q3 2016 | % growth | % constant currency |
| Revenue | 5,464.8 | 5,088.2 | 7.4% | 4.3% |
| Gross profit | 900.6 | 858.3 | 4.9% | 2.1% |
| Operating profit | 227.9 | 211.1 | 7.9% | 4.4% |
The growth in revenue this quarter is weaker than in the second quarter of 2017 which grew by 6% in constant currency and is at the bottom end of the range the company gave in its Q2 results announcement.
Gross margin narrowed in the third quarter from 16.9% to 16.5%.
ManpowerGroup also reported third-quarter revenue rose 1.5% in its Northern Europe segment; German revenue rose 9% in constant currency while the Nordics rose 7%. However, UK revenue fell 8% in constant currency. The Netherlands was flat and Belgium grew 2% in constant currency.
In Southern Europe, aside from the good growth in France, the company also performed well in Italy (up 23% in constant currency) and Spain (up 12% in constant currency).
In the US, third-quarter revenue fell 8.8%; that follows a year-over-year decline of 7.4% in the second quarter. Improvements were seen in the company’s main Latin American markets; Mexico (up 15% in constant currency) and Argentina (up 20% in constant currency).
In Asia Pacific, the Japanese market grew revenue by 3% in constant currency while Australia/New Zealand declined by 3%.
Revenue by geography was broken down as follows.
| (USD millions) | Q3 2017 | Q3 2016 | % growth | % constant currency | Q1 2017 (EUR millions) |
| Americas | |||||
| United States | 659.9 | 723.7 | -8.8% | -8.8% | 559.1 |
| Other Americas | 401.6 | 383.7 | 4.7% | 3.6% | 340.2 |
| Total Americas | 1,061.5 | 1,107.4 | -4.1% | -4.5% | 899.3 |
| Southern Europe | |||||
| France | 1,481.7 | 1,277.8 | 16.0% | 10.2% | 1,255.3 |
| Italy | 386.1 | 299.0 | 29.1% | 22.7% | 327.1 |
| Other Southern Europe | 450.6 | 389.5 | 15.7% | 9.8% | 381.8 |
| Total Southern Europe | 2,318.4 | 1,966.3 | 17.9% | 12.0% | 1,964.2 |
| Northern Europe | 1,367.9 | 1,300.1 | 5.2% | 1.5% | 1,158.9 |
| Asia Pacific Middle East | 665.4 | 650.9 | 2.2% | 3.6% | 563.7 |
| Right Management | 51.6 | 63.5 | -18.8% | -19.6% | 43.7 |
Third-quarter gross-profit rose 2.1% on a constant currency basis. Looking at individual business lines, gross profit fell 19% in constant currency in the company’s Right Management outplacement business, but rose 9% in constant currency in the ManpowerGroup solutions business, which includes RPO and the TAPFIN managed service provider offering.
“We made good progress with solid results in the third quarter and we are well positioned to finish 2017 with [a] strong performance,” said Chairman and CEO Jonas Prising. “Our market-leading global footprint and extensive portfolio of workforce solutions continue to resonate well with our clients and candidates. We expect the broad-based global improvement in both employer hiring intentions and economic growth to provide us with good opportunities for continued profitable growth.”
ManpowerGroup forecast fourth-quarter revenue to range from a 5% increase in constant currency to an increase of 7%. Q4 2017 forecast in constant currency by geography includes:
- Americas, flat to down 2%
- Southern Europe, up 12% to 14%
- Northern Europe, down 1% to up 1%
- Asia Pacific and the Middle East, up 6% to 8%
- Right Management, down 6% to 8%
The company forecast fourth-quarter gross profit of between 16.5% and 16.7%.
The results were ahead of market expectations and, on Friday, shares in ManpowerGroup closed at USD 122.74, up 0.04% on the day. Based on its current share price the company has a market value of USD 8.19 billion.