Manpowergroup · NYSE:MAN
Manpowergroup — Q3 2024 Earnings Presentation
23 slides from Manpowergroup's earnings presentation, Oct 17, 2024
Slide 1: ManpowerGroup Third Quarter Results
October 17, 2024 ManpowerGroup Third Quarter Results
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This presentation contains statements, including statements regarding economic and geopolitical uncertainty, trends in labor demand and the future strengthening of such demand, financial outlook, the impact of the Company’s restructuring activities, demand for specific skil
Slide 3: Consolidated Financial Highlights
ManpowerGroup 2024 Third Quarter Results Consolidated Financial Highlights (1) As Reported As Adjusted Q3 Financial Highlights -3% -3% -2% CC -2% CC Revenue $4.5B -30 bps -30 bps Gross Margin 17.3% (2) 1% 0% EBITA $79M 3% CC 2% CC ($117M as adjusted) EBITA Margin 1.7% (2) 0 bps 10 bps (2.6% as adjus
Slide 4: EPS Bridge – Q3 vs. Guidance Midpoint
ManpowerGroup 2024 Third Quarter Results EPS Bridge – Q3 vs. Guidance Midpoint (1) (1) Detail of items included on slide 3. ManpowerGroup | Third Quarter 2024 Results October 2024 | 4
Slide 5: Business Line Revenue Q3 2024
ManpowerGroup 2024 Third Quarter Results Business Line Revenue Q3 2024(1) 10% 7% 7% 5% 0% -2% 0% -5% -10% -10% -10% MANPOWER EXPERIS TALENT SOLUTIONS vs. 2023 reported % vs. 2023 organic CC % Manpower posted a flat organic CC revenue result, a slight improvement from the Q2 trend. Talent Solutions e
Slide 6: Consolidated Gross Margin Change
ManpowerGroup 2024 Third Quarter Results Consolidated Gross Margin Change ManpowerGroup | Third Quarter 2024 Results October 2024 | 6
Slide 7: Business Line Gross Profit – Q3 2024
ManpowerGroup 2024 Third Quarter Results Business Line Gross Profit – Q3 2024(1) Trend █ Manpower █ Experis █ Talent Solutions █ ManpowerGroup – Total (1) Business line classifications can vary by entity and are subject to change as service requirements change. ManpowerGroup | Third Quarter 2024 Res
Slide 8: SG&A Expense Bridge – Q3 YoY
ManpowerGroup 2024 Third Quarter Results SG&A Expense Bridge – Q3 YoY (in millions of USD) (16.1% CC) (14.8% CC) (15.7% CC) ManpowerGroup | Third Quarter 2024 Results October 2024 | 8
Slide 9: Americas Segment
ManpowerGroup 2024 Third Quarter Results Americas Segment (23% of Revenue) (1) As Reported As Adjusted Q3 Financial Highlights -5% -5% Revenue $1.1B 2% CC 2% CC -5% -7% OUP $36M -3% CC -1% CC ($41M as adjusted) OUP Margin 3.4% 0 bps 10 bps (3.9% as adjusted) (1) Current period excludes the impact of
Slide 10: Americas – Q3 Revenue Trend YoY
ManpowerGroup 2024 Third Quarter Results Americas – Q3 Revenue Trend YoY % of Segment Average Daily Revenue Revenue Trend - CC Revenue Trend Revenue Trend - CC ManpowerGroup | Third Quarter 2024 Results October 2024 | 10
Slide 11: Southern Europe Segment
ManpowerGroup 2024 Third Quarter Results Southern Europe Segment (46% of Revenue) (1) As Reported As Adjusted Q3 Financial Highlights -1% -1% Revenue $2.1B -1% CC -1% CC -10% -8% OUP $76M -11% CC -9% CC ($81M as adjusted) OUP Margin 3.6% 40 bps 30 bps (3.9% as adjusted) (1) Current period excludes t
Slide 12: Southern Europe – Q3 Revenue Trend YoY
ManpowerGroup 2024 Third Quarter Results Southern Europe – Q3 Revenue Trend YoY Revenue Trend Revenue Trend - CC ManpowerGroup | Third Quarter 2024 Results October 2024 | 12
Slide 13: Northern Europe Segment
ManpowerGroup 2024 Third Quarter Results Northern Europe Segment (19% of Revenue) (1) As Reported As Adjusted Q3 Financial Highlights -9% -9% Revenue $828M -11% CC -11% CC OUP -$26M (2) (2) NM NM (2) (2) NM NM ($0M as adjusted) OUP Margin -3.1% 30 bps 40 bps (0.0% as adjusted) (1) Current period exc
Slide 14: Northern Europe – Q3 Revenue Trend YoY
ManpowerGroup 2024 Third Quarter Results Northern Europe – Q3 Revenue Trend YoY % of Segment Average Daily Revenue Revenue Trend - CC Revenue Trend Revenue Trend - CC ManpowerGroup | Third Quarter 2024 Results October 2024 | 14
Slide 15: APME Segment
ManpowerGroup 2024 Third Quarter Results APME Segment (12% of Revenue) (1) As Reported As Adjusted Q3 Financial Highlights 0% 0% 2% CC 2% CC Revenue $563M 3% OCC 3% OCC -6% 1% OUP $23M -2% CC 4% CC 0% OCC 5% OCC ($25M as adjusted) OUP Margin 4.1% 20 bps 10 bps (4.5% as adjusted) (1) Current period e
Slide 16: APME – Q3 Revenue Trend YoY
ManpowerGroup 2024 Third Quarter Results APME – Q3 Revenue Trend YoY % of Segment Average Daily Revenue Revenue Trend - CC Revenue Trend Revenue Trend - CC ManpowerGroup | Third Quarter 2024 Results October 2024 | 16
Slide 17: Cash Flow Summary
ManpowerGroup 2024 Third Quarter Results Cash Flow Summary ManpowerGroup | Third Quarter 2024 Results October 2024 | 17
Slide 18: Balance Sheet Highlights
ManpowerGroup 2024 Third Quarter Results Balance Sheet Highlights Total Debt (in millions of USD) Total Debt Net Debt Net (Cash) Total Debt to Total Capitalization ManpowerGroup | Third Quarter 2024 Results October 2024 | 18
Slide 19: Fourth Quarter 2024 Outlook
ManpowerGroup 2024 Third Quarter Results Fourth Quarter 2024 Outlook Down 1-5% (Down 1-5% CC) (Flat / Down 4% Revenue Total OCC) Americas Down 1-5% (Up 2-6% CC) Southern Up 1% / Down 3% (Down 1-5% OCC) Europe Northern Down 7-11% (Down 10-14% CC) Europe APME Flat / Down 4% (Down 3-7% CC) (Up 4-8% OCC
Slide 20: Key Take Aways
ManpowerGroup 2024 Third Quarter Results Key Take Aways Continuation of a challenging environment in Europe and North America as employers remain cautious, while APME and Latin America continued to see good demand. Gross profit margin reflects solid staffing margin trends while permanent recruitment
Slide 21: Appendix
Appendix ManpowerGroup | Third Quarter 2024 Results October 2024 | 21
Slide 22: Industry Vertical Composition Based on Revenues – Q3 2024
ManpowerGroup 2024 Third Quarter Results Industry Vertical Composition Based on Revenues – Q3 2024 Industry vertical composition has been updated to align with our Global Sales Verticals based on client segmentation. ManpowerGroup | Third Quarter 2024 Results October 2024 | 22
Slide 23: Debt and Credit Facilities – September 30, 2024
ManpowerGroup 2024 Third Quarter Results Debt and Credit Facilities – September 30, 2024 (in millions of USD) (2) Interest Maturity Total Remaining Rate Date Outstanding Available Euro Notes - €500M 1.809% Jun 2026 556 - (4) Euro Notes - €400M 3.514% Jun 2027 443 - (1)(2) Revolving Credit Agreement