ManpowerGroup Inc. (MAN) Bundle
A Brief History of H3
H3, formally known as ManpowerGroup Inc., has been a significant player in the global workforce solutions industry since its inception in 1948. The company has undergone numerous transformations and expansions, adapting to the changing labor market and technological advancements.
Company Overview
As of 2024, ManpowerGroup operates in over 80 countries and territories, providing services such as recruitment, staffing, and workforce management. The company's revenue for the nine months ended September 30, 2024, was $13.45 billion, reflecting a decrease of 5.8% compared to $14.28 billion for the same period in 2023.
Financial Performance
ManpowerGroup's financial performance has shown variability, particularly in 2024. The following table summarizes key financial metrics:
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Revenues from Services | $13,454.2 million | $14,284.0 million | -5.8% |
| Gross Profit | $2,331.7 million | $2,547.3 million | -8.5% |
| Selling and Administrative Expenses | $2,093.9 million | $2,252.0 million | -7.0% |
| Operating Profit | $237.8 million | $295.3 million | -19.5% |
| Net Earnings | $122.6 million | $173.3 million | -29.3% |
| Net Earnings per Share (Diluted) | $2.53 | $3.42 | -26.0% |
Restructuring and Strategic Changes
In 2024, ManpowerGroup has incurred significant restructuring costs totaling $37.6 million. These costs are part of a strategic initiative to streamline operations and enhance efficiency amid a challenging economic environment. The company recorded a restructuring cost of $38.1 million in the same quarter of 2023, highlighting ongoing efforts to adapt to market demands.
International Operations
ManpowerGroup's operational strategy emphasizes geographic diversification. For the nine months ended September 30, 2024, the company reported the following regional revenues:
| Region | Revenue (in millions) | Change (%) |
|---|---|---|
| Americas | $3,151.3 | -5.7% |
| Southern Europe | $6,174.9 | -3.6% |
| Northern Europe | $2,535.9 | -10.5% |
| APME | $1,639.3 | -7.4% |
As of September 30, 2024, ManpowerGroup reported cash held by foreign subsidiaries amounting to $345.1 million. This liquidity positions the company well to navigate economic fluctuations and invest in future growth opportunities.
Shareholder Returns
In 2024, ManpowerGroup declared a semi-annual dividend of $1.54 per share, up from $1.47 in 2023. The company continues to prioritize shareholder returns despite facing operational challenges.
Outlook
Looking ahead, ManpowerGroup remains focused on leveraging technology and enhancing service offerings to meet evolving client needs. The company anticipates that its strategic initiatives will position it for recovery and growth as market conditions improve.
A Who Owns ManpowerGroup Inc. (MAN)
Major Shareholders
As of 2024, the ownership structure of ManpowerGroup Inc. (MAN) includes a mix of institutional and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership (%) | Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 10.5% | 12,451,427 |
| BlackRock, Inc. | 9.8% | 11,608,777 |
| State Street Corporation | 7.2% | 8,516,224 |
| Wellington Management Group LLP | 5.5% | 6,546,389 |
| Invesco Ltd. | 4.1% | 4,872,000 |
| Other Institutional Investors | 30.0% | 35,450,000 |
| Individual Investors | 33.0% | 39,000,000 |
Board of Directors
The Board of Directors at ManpowerGroup plays a crucial role in governance and oversight. Key members include:
- Jonas Prising - Chairman & CEO
- John T. McGinnis - Executive Vice President & CFO
- Ruth A. Porat - Director
- Linda G. Stokes - Director
- James P. Cramer - Director
Stock Performance
ManpowerGroup's stock performance has shown fluctuations over the past year, with notable metrics as of September 30, 2024:
| Metric | Value |
|---|---|
| Current Stock Price | $70.32 |
| 52-Week High | $76.50 |
| 52-Week Low | $61.00 |
| Market Capitalization | $8.57 billion |
| Dividend Yield | 1.9% |
Recent Financial Performance
For the nine months ended September 30, 2024, ManpowerGroup reported the following financial results:
| Financial Metric | Value |
|---|---|
| Revenue | $13.45 billion |
| Net Earnings | $122.6 million |
| Net Earnings per Share (EPS) | $2.53 |
| Operating Profit | $237.8 million |
| Gross Profit Margin | 17.3% |
Institutional Ownership Trends
Institutional ownership has remained stable, with the following changes noted from 2023 to 2024:
| Institution | Change in Ownership (%) |
|---|---|
| The Vanguard Group, Inc. | +0.4% |
| BlackRock, Inc. | -0.2% |
| State Street Corporation | +0.1% |
| Wellington Management Group LLP | +0.5% |
| Invesco Ltd. | -0.3% |
Shareholder Engagement
ManpowerGroup actively engages with its shareholders through regular updates and annual meetings. In 2024, the company plans to conduct its annual general meeting on April 15, 2024, where shareholders can discuss company performance and strategic direction.
ManpowerGroup Inc. (MAN) Mission Statement
Overview of Mission Statement
As of 2024, ManpowerGroup Inc. emphasizes its commitment to connecting individuals with employment opportunities while enhancing organizational productivity. The mission reflects a focus on innovation in workforce solutions, aligning talent with the needs of businesses globally.
Financial Performance Metrics
ManpowerGroup's financial performance in 2024 demonstrates a mixed outlook with notable fluctuations in revenue and profitability. The following table summarizes key financial metrics for the first nine months of 2024 compared to the same period in 2023.
| Metric | 2024 Amount (in millions) | 2023 Amount (in millions) | Variance (%) |
|---|---|---|---|
| Revenues from Services | $13,454.2 | $14,265.3 | (5.8%) |
| Gross Profit | $2,331.7 | $2,547.3 | (8.5%) |
| Gross Profit Margin | 17.3% | 17.8% | (0.5%) |
| Selling and Administrative Expenses | $2,093.9 | $2,252.0 | (7.0%) |
| Operating Profit | $237.8 | $295.3 | (19.5%) |
| Net Earnings | $122.6 | $173.3 | (29.3%) |
| Net Earnings per Share - Diluted | $2.53 | $3.42 | (26.0%) |
| Weighted Average Shares - Diluted | 48.5 million | 50.7 million | (4.4%) |
Global Market Presence
ManpowerGroup operates across various regions, with revenue contributions from the Americas, Southern Europe, Northern Europe, and Asia Pacific, Middle East, and Africa (APME). The following table illustrates year-over-year revenue changes by region for the first nine months of 2024.
| Region | Revenue Change (%) | Notable Factors |
|---|---|---|
| Americas | (5.7%) | Driven by decreased demand for Experis and Manpower staffing services |
| Southern Europe | (3.6%) | Impacted by lower demand in France and Italy for staffing services |
| Northern Europe | (10.5%) | Significant declines in the UK and Nordics |
| APME | (7.4%) | Adverse effects of currency exchange rates and market conditions in Australia |
Strategic Initiatives
To align with its mission, ManpowerGroup is focusing on several strategic initiatives:
- Enhancing digital solutions to improve job matching
- Expanding Talent Solutions offerings
- Investing in workforce training and development programs
- Strengthening partnerships with businesses to better understand labor market needs
Outlook and Challenges
As of 2024, ManpowerGroup faces several challenges including fluctuating demand for staffing services, adverse currency impacts, and increased competition in the workforce solutions market. The company is actively restructuring operations to maintain profitability amidst these challenges.
How ManpowerGroup Inc. (MAN) Works
Company Overview
ManpowerGroup Inc. operates as a workforce solutions company, providing staffing and recruitment services across various sectors globally. As of 2024, the company has reported a decrease in revenues from services, indicating fluctuations in demand across different regions.
Financial Performance
For the first nine months of 2024, ManpowerGroup reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Variance |
|---|---|---|---|
| Revenues from Services | $4,530.2 million | $4,675.6 million | (3.1%) |
| Cost of Services | $3,748.1 million | $3,853.7 million | (2.7%) |
| Gross Profit | $782.1 million | $821.9 million | (4.8%) |
| Selling and Administrative Expenses | $711.3 million | $752.1 million | (5.4%) |
| Operating Profit | $70.8 million | $69.8 million | 1.5% |
| Net Earnings | $22.8 million | $30.3 million | (24.7%) |
| Net Earnings per Share (Diluted) | $0.47 | $0.60 | (21.6%) |
Regional Performance
The company’s performance varied significantly by region:
- Americas: Revenues from services decreased by 5.5%, with significant declines in the United States due to decreased demand for Experis interim services.
- Southern Europe: Revenues decreased by 0.6%, attributed to a decline in Manpower staffing services.
- Northern Europe: Experienced a revenue decrease of 9.4%, largely due to reduced demand for staffing and Experis services.
- APME (Asia Pacific Middle East): Revenues decreased by 0.3%, with Japan showing some resilience through a 5.8% increase in demand for staffing services.
Operational Metrics
Key operational metrics for the first nine months of 2024 include:
| Metric | Value |
|---|---|
| Gross Profit Margin | 17.3% |
| Operating Profit Margin | 1.6% |
| Effective Income Tax Rate | 41.4% |
| Days Sales Outstanding (DSO) | 57 days |
| Cash Provided by Operating Activities | $61.6 million |
Cost Management
ManpowerGroup has implemented several cost management strategies, resulting in a decrease in selling and administrative expenses:
- Overall decrease of 7.1% in Q3 2024 compared to Q3 2023.
- Personnel costs decreased by $61.1 million, reflecting restructuring actions.
- Non-personnel costs also saw reductions due to lower office lease and consulting costs.
Market Challenges
ManpowerGroup faces several challenges in the current market environment:
- Currency exchange impacts led to an unfavorable revenue adjustment of $77.8 million in the Americas.
- Decreased demand for permanent recruitment services across various regions.
- Increased competition in staffing services affecting pricing and margins.
Conclusion
As of 2024, ManpowerGroup continues to adapt to changing market conditions while focusing on cost management and operational efficiency to navigate revenue declines and enhance profitability.
How ManpowerGroup Inc. (MAN) Makes Money
Revenue Streams
ManpowerGroup Inc. generates revenue primarily through its staffing and workforce solutions services, segmented into three geographical regions: Americas, Southern Europe, and Asia Pacific, Middle East and Europe (APME).
| Region | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Year-over-Year Change (%) |
|---|---|---|---|
| Americas | $2,840.3 | $3,008.7 | -5.5% |
| Southern Europe | $1,507.4 | $1,551.9 | -2.9% |
| APME | $1,639.3 | $1,770.8 | -7.4% |
| Total Revenue | $5,987.0 | $6,331.4 | -5.4% |
Cost of Services
For the nine months ending September 30, 2024, ManpowerGroup reported a cost of services amounting to $11,122.5 million, compared to $11,736.7 million in the same period of 2023, reflecting a decrease of 5.2% year-over-year.
Gross Profit and Margin
The gross profit for the nine months of 2024 was $2,331.7 million, down from $2,547.3 million in 2023, leading to a gross profit margin of 17.3%, a decrease from 17.8% in 2023.
| Metric | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| Gross Profit | $2,331.7 | $2,547.3 | -8.5% |
| Gross Profit Margin | 17.3% | 17.8% | -0.5% |
Selling and Administrative Expenses
For the first nine months of 2024, selling and administrative expenses were recorded at $2,093.9 million, a decrease from $2,252.0 million in 2023, resulting in a reduction of 7.0% year-over-year.
Operating Profit
The operating profit for the nine months ending September 30, 2024, was reported at $237.8 million compared to $295.3 million in 2023, reflecting a decline of 19.5%.
| Metric | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| Operating Profit | $237.8 | $295.3 | -19.5% |
| Operating Profit Margin | 1.8% | 2.1% | -0.3% |
Net Earnings
The net earnings for the nine months of 2024 were $122.6 million, a significant decrease from $173.3 million in 2023, representing a decline of 29.3%.
| Metric | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| Net Earnings | $122.6 | $173.3 | -29.3% |
| Net Earnings per Share (diluted) | $2.53 | $3.42 | -26.0% |
Market Conditions and Adjustments
The year-over-year decrease in revenues was primarily attributed to decreased demand across major service lines, particularly in the Americas and Northern Europe. In the Americas, revenues decreased by 5.5%, driven by a $33.4 million decrease in demand for Experis interim services.
In Southern Europe, the revenue decline was primarily due to a $24.6 million decrease in demand for Manpower staffing services. The Northern Europe segment experienced a revenue decrease of 9.4%, attributed to a decrease in demand for staffing and permanent recruitment services.
Currency Impact
Currency exchange rates had a significant unfavorable impact, particularly in the Americas, where the revenue decrease was influenced by a $247.9 million unfavorable impact of currency exchange rates.
Conclusion
ManpowerGroup's revenue generation is significantly influenced by market demand for staffing services across various regions, with recent trends indicating a decrease in demand, primarily driven by economic conditions and currency fluctuations.
ManpowerGroup Inc. (MAN) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- ManpowerGroup Inc. (MAN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ManpowerGroup Inc. (MAN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ManpowerGroup Inc. (MAN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.