ManpowerGroup Q2 2024: Navigating Challenges, Showcasing Resilience with $4.5B in Revenues

ManpowerGroup reported its Q2 2024 results, revealing a 7% year-over-year decline in revenues to $4.5 billion, affected by a challenging environment in North America and Europe, yet solid demand in Latin America and the Asia-Pacific. The company achieved a gross profit margin of 17.4% and reduced SG&A expenses by 9%. Net earnings per diluted share were $1.24, slightly down from $1.29 the previous year. Excluding certain losses, adjusted earnings per share were $1.30, a 12% decrease in constant currency. ManpowerGroup continues to navigate currency impacts and anticipates Q3 diluted earnings per share between $1.25 and $1.35.

Revenues of  $4.5 billion  (-7% as reported, -3% constant currency)

Continuation of challenging environment in  North America  and  Europe  during the quarter, solid demand in  Latin America  and  Asia-Pacific  region

Gross profit margin of 17.4%. Staffing margins remained solid; permanent recruitment levels stepped down slightly from the previous quarter SG&A reduced further during the quarter (-9% as reported, -7% constant currency, -5% constant currency as adjusted 1 )

$27 million  of common stock repurchased during the quarter MILWAUKEE ,  July 18, 2024  -- Manpower Group (NYSE: MAN) today reported net earnings of  $1.24  per diluted share for the three months ended  June 30, 2024  compared to net earnings of  $1.29  per diluted share in the prior year period.  Net earnings in the quarter were  $60.1 million  compared to net earnings of  $65.2 million  a year earlier. Revenues for the first quarter were  $4.5 billion , a 7% decrease from the prior year period.

The quarter included final run-off losses related to the Proservia Germany business. These losses reduced earnings per share by  $0.06  in the second quarter. Excluding these losses, earnings per share was  $1.30  per diluted share in the quarter representing a decrease of 12% in constant currency. 2

Financial results in the quarter were also impacted by the U.S. dollar relative to foreign currencies compared to the prior year period. The second quarter earnings per share guidance estimated a negative  7 cents  foreign currency impact and the actual impact was slightly worse at negative  8 cents . On a constant currency basis, revenues decreased 3% compared to the prior year period.

Jonas Prising , ManpowerGroup Chairman & CEO, said, "Employers in  North America  and  Europe  continue to remain cautious.  Permanent recruitment activity softened slightly further from the previous quarter, while staffing and solutions activity remained relatively stable across most of our large markets. We continue to prioritize the execution of our strategic initiatives and driving sales activities while balancing costs to align with the current operating environment.

We anticipate diluted earnings per share in the third quarter will be between  $1.25  and  $1.35 , which includes an estimated unfavorable currency impact of  5 cents .  Our guidance excludes any restructuring costs and any  Argentina  related impact of non-cash currency translation losses."

Net earnings for the six months ended  June 30, 2024  were  $99.8 million , or net earnings of  $2.05  per diluted share compared to net earnings of  $143.0 million , or net earnings of  $2.80  per diluted share in the prior year, respectively. The current year to date period included run-off losses related to the Proservia Germany business and  Argentina  hyperinflationary related non-cash currency translation losses which reduced earnings per share by  20 cents . Excluding the net impact of these charges, earnings per share for the six-month period was  $2.25  per diluted share representing a decrease of 26% in constant currency. 3  Revenues for the six-month period were  $8.9 billion , representing a decrease of 7% compared to the prior year or a decrease of 4% in constant currency. Earnings per share for the six-month period were negatively impacted by  12 cents  due to changes in foreign currencies compared to the prior year.

In conjunction with its second quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on  July 18, 2024  at  7:30 a.m. central time  ( 8:30 a.m. eastern time ). Prepared remarks for the conference call, webcast details, presentation and recordings are included within the Investor Relations section of manpowergroup.com.

Supplemental financial information referenced in the conference call can be found at  http://investor.manpowergroup.com/ .

About ManpowerGroup ManpowerGroup ® (NYSE: MAN), the leading global workforce solutions company, helps organizations transform in a fast-changing world of work by sourcing, assessing, developing, and managing the talent that enables them to win. We develop innovative solutions for hundreds of thousands of organizations every year, providing them with skilled talent while finding meaningful, sustainable employment for millions of people across a wide range of industries and skills. Our expert family of brands – Manpower, Experis, and Talent Solutions – creates substantially more value for candidates and clients across more than 70 countries and territories and has done so for 75 years. We are recognized consistently for our diversity – as a best place to work for Women, Inclusion, Equality, and Disability, and in 2024 ManpowerGroup was named one of the World's Most Ethical Companies for the 15 th  time – all confirming our position as the brand of choice for in-demand talent. For more information, visit   www.manpowergroup.com .

Forward-Looking Statements This press release contains statements, including statements regarding economic and geopolitical uncertainty, trends in labor demand and the future strengthening of such demand, financial outlook, and the Company's strategic initiatives and technology investments that are forward-looking in nature and, accordingly, are subject to risks and uncertainties regarding the Company's expected future results.  The Company's actual results may differ materially from those described or contemplated in the forward-looking statements due to numerous factors.  These factors include those found in the Company's reports filed with the SEC, including the information under the heading "Risk Factors" in its Annual Report on Form 10-K for the year ended  December 31, 2023 , which information is incorporated herein by reference.

The Company assumes no obligation to update or revise any forward-looking statements. We reference certain non-GAAP financial measures, which we believe provide useful information for investors. We include a reconciliation of these measures, where appropriate, to GAAP on the Investor Relations section of our website at manpowergroup.com.

1  Adjusted to exclude restructuring costs in the prior year and Proservia Germany run-off costs in the current year. 2  The prior year period included restructuring costs and  Argentina  related currency translation losses which reduced earnings per share by  $0.29  which are also excluded when determining the year over year trend. 3  The prior year period included restructuring costs and  Argentina  related currency translation losses which reduced earnings per share by  $0.39  which are also excluded when determining the year over year trend.