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View All NewsWorld – ManpowerGroup revenue up 5.7% in constant currency in Q2, cites demand for higher-margin business
Revenue at ManpowerGroup Inc. rose 5.7% in constant currency to $5.1 billion with growth led by its US operations. Revenue missed financial analysts’ consensus of $5.27 billion.
Chairman and CEO Jonas Prising said second-quarter results reflect the disciplined execution of the company’s initiatives and continued demand for its higher-margin business.
“As we start the third quarter, labor markets remain very solid and demand for talent is strong,” Prising said. “We continue to monitor those sectors in Europe where present-day supply-chain disruptions are impacting our business, particularly in the automotive industry. At the same time, we also believe the persistent level of talent shortage represents a significant opportunity for our business.”
Exchange rates impacted revenue in the second quarter. On a reported basis, revenue fell 3.8%.
| (USD millions) | Q2 2022 | Q2 2021 | % change | % constant currency |
| Revenue from services | $5,074.1 | $5,277.1 | -3.8% | 5.7% |
| Gross profit | $921.2 | $860.1 | 7.1% | 16.4% |
| Gross margin | 18.2% | 16.3% | ||
| Net earnings | $122.2 | $111.6 | 9.5% | 21.5% |
In ManpowerGroup’s Experis IT staffing and services business, revenue rose 10% on an organic basis and in constant currency. And in its talent solutions business, which includes RPO and MSP, revenue rose 13%. Second-quarter revenue in its core Manpower segment rose only 1% on an organic, constant currency basis.
The company said growth was more modest in its Manpower segment because of supply chain disruptions in certain European markets.
Revenue by geography
| (USD millions) | Q2 2022 | Q2 2021 | % change | % constant currency |
| Americas | ||||
| United States | $903.9 | $628.8 | 43.7% | 43.7% |
| Other Americas | $358.8 | $415.5 | -13.6% | -9.0% |
| Total Americas | $1,262.7 | $1,044.3 | 20.9% | 22.7% |
| Southern Europe | ||||
| France | $1,238.2 | $1,346.8 | -8.1% | 4.1% |
| Italy | $454.3 | $469.1 | -3.2% | 9.7% |
| Other Southern Europe | $508.9 | $606.5 | -16.1% | -7.8% |
| Total Southern Europe | $2,201.4 | $2,422.4 | -9.1% | 2.2% |
| Northern Europe | $1,027.1 | $1,190.5 | -13.7% | -2.4% |
| Asia Pacific Middle East | $603.7 | $619.9 | -2.6% | 9.7% |
In Asia Pacific, Japanese revenue rose 12% in constant currency, but Australian revenue fell 9%.
In France, the company’s largest market, revenue rose 4% in constant currency. Italy, which is also reported in ManpowerGroup’s Southern Europe segment, saw revenue rise 10% in constant currency. However, Spanish revenue fell 20%, and Swiss revenue was down 10%.
Revenue was down across ManpowerGroup’s Northern Europe segment except in the Nordics, where revenue was up 10% in constant currency, and Belgium, where revenue was up 2%. In other parts of Northern Europe, revenue fell 6% in constant currency in the UK, 8% in Germany and 5% in the Netherlands.
US revenue rose 12% in constant currency excluding acquisitions. In October 2021, ManpowerGroup completed its acquisition of ettain group, one of the largest IT staffing providers in the US. Canadian revenue rose 4% in constant currency, while Mexican revenue fell 61%.
Guidance
For the third quarter, ManpowerGroup forecasts:
- Total revenue: down 2% to 6% (up 4% to 8% in constant currency)
- Americas revenue: up 23% to 27% (up 25% to 29% in constant currency)
- Southern Europe revenue: down 11% to 15% (down 2% to up 2% in constant currency)
- Northern Europe revenue: down 9% to 13% (flat to up 4% in constant currency)
- Asia Pacific Middle East revenue: down 3% to 7% (up 6% to 10% in constant currency)
Share price and market cap
Shares in ManpowerGroup on Tuesday closed down 0.47% to USD 79.18; they were 7.35% above their 52-week low, according to FT.com. The company had a market cap of USD 4.20 billion.