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ManpowerGroup says North America and Europe still challenging markets

ManpowerGroup says North America and Europe still challenging markets

Craig Johnson
| January 30, 2025
Manpower sign on building in Montreal

Main article

North America and Europe continued to experience a challenging environment in the fourth quarter, ManpowerGroup (NYSE: MAN) reported on 30 January. However, its Asia Pacific and Latin American business saw good demand.

“The operating conditions experienced across our regions came in largely as expected during the quarter, with relatively stable activity at lower levels across North America and Europe and good demand elsewhere,” ManpowerGroup Chair and CEO Jonas Prising said in a press release.

Fourth-quarter revenue fell 2.9% in constant currency to USD 4.40 billion. While the results missed top-line consensus, the EPS result was slightly ahead of analysts’ expectations.

“We took additional cost actions during the quarter, primarily in some of our most challenged European markets,” Prising said. “Looking back at full year 2024, although difficult market conditions weighed heavily on our financial results, we competed well in many markets as a result of our winning-in-the-market focus.”

The fourth quarter includes restructuring costs of USD 16.0 million, pension settlements and net losses from the sale of the company’s Austria business, which will be operated as a franchise going forward.

ManpowerGroup – Q4 2024

(USD millions)

Q4 2024

Q4 2023

% change

% constant currency

Revenue from services

4,399.7

4,630.5

-5.0%

-2.9%

Gross profit

755.1

810.7

-6.9%

-4.9%

Gross margin

17.2%

17.5%

-

-

Net earnings/net loss

22.5

(84.5)

nm

nm

Revenue by Geography – Q4 2024

(USD millions)

Q4 2024

Q4 2023

% change

% constant currency

United States

691.8

685.2

1.0%

1.0%

Other Americas

381.8

389.4

-2.0%

18.1%

Total Americas

1,073.6

1,074.6

-0.1%

7.2%

France

1,134.0

1,209.7

-6.2%

-5.5%

Italy

418.7

415.1

0.9%

1.8%

Other Southern Europe

490.2

487

0.7%

1.1%

Total Southern Europe

2,043.4

2,111.8

-3.2%

-2.5%

Northern Europe

768.4

913.7

-15.9%

-16.4%

Asia Pacific Middle East

522

552.2

-5.5%

-4.0%

Intercompany eliminations

-7.7

-21.8

-

-

Total

4,399.7

4,630.5

-5.0%

-2.9%

Weakness in Europe, in particular Northern Europe, was somewhat mitigated by 1% organic constant currency revenue growth in the US. In the company’s largest market, France, revenue declined by 7% on an organic constant currency basis. Germany, the UK and Nordics each faced revenue declines in excess of 20% while Japan grew by 7%.  

Revenue by business line:

  • In Manpower, the company’s staffing brand, revenue fell 1% year over year on an organic, constant currency basis, down slightly from the third-quarter trend of flat year over year.
  • Experis, which includes IT staffing, saw revenue fall 6% on an organic constant currency basis, which was an improvement from the third-quarter trend of down 10% year over year.
  • Talent solutions — which includes RPO, MSP and Right Management and its outplacement offering — recorded a 6% increase in revenue on an organic constant currency basis. The company noted MSP reported strong double-digit percentage growth, while Right Management saw a slowing in outplacement activity.
Full-Year Earnings

Revenue

17,853.9

18,914.5

-5.6%

-3.4%

Gross profit

3,086.8

3,358.0

-8.1%

-6.2%

Gross margin

17.3%

17.8%

-

-

Net earnings

145.1

88.8

63.4%

71.8%

Guidance

For the first quarter, ManpowerGroup forecasts total revenue will be down between 9% and 13%, or down 5% to 9% in constant currency.

Forecast by geography are:

  • Americas revenue is expected to be down 3% to up 1% in constant currency.
  • Southern Europe revenue is expected to be down 4% to 8% in constant currency.
  • Northern Europe revenue is expected to be down 12% to 16% in constant currency.
  • Asia Pacific Middle East revenue is expected to be down 12% to 16% in constant currency.

Gross profit margin is expected to be in the range of 17.2% to 17.4%.

Share Price

Shares in ManpowerGroup closed on 30 January 2025 at USD 60.71, up 0.54% on the day. The company has a market cap of USD 2.85 billion.