MAN - Earnings call transcript Q1 2021

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Operator

Welcome to ManpowerGroup First Quarter Earnings Results Conference Call. At this time, all participants are in a listen-only mode until the Q&A session of today's conference. This call will be recorded.

If you have any objections, please disconnect at this time. And now, I will turn the call over to ManpowerGroup, Chairman and CEO, Jonas Prising. begin. may you Sir,

Jonas Prising

us the joining call quarter for XXXX. today for first for conference Thanks

with is me Officer, call the On today Jack our McGinnis. Financial Chief

within of For Investor convenience, we included prepared your have Relations website our remarks section at manpowergroup.com. our the

some some balance going quarter. will flow, thoughts the session. guidance sheet concluding the and start through highlights and results second Jack the will for through cover cash will proceed, start of of quarter. the then we We the our go language. before operating Harbor But by the Jack Then segments, share now I before will our Safe and Q&A we

Jack McGinnis

any the to may statements beliefs. forward-looking Actual and This Slide projected everyone. management's this reconciliation actual assume to regarding regarding of pandemic, our no morning, in or and known the X are Good current made obligation statements. to risks differ expectations impact subject COVID-XX and or results measures. uncertainties. and We our from based call including unknown includes materially information of those release that further on These factors forward-looking statements, statements the identifies results statements forward-looking call non-GAAP are of conference in forward-looking differ statements. might cause earnings presentation materially revise update which

Jonas Prising

we history of and time, investments From said, and early financial moment impact see XXXX would as a we steadily merge the enabled and ahead or to resulting good on us with in although pandemic start that lockdowns have we and ends. most our out lay like. which that recovery. uneven the so are Thanks, related experience Jack. in of of and in on recovery the had strong mitigate to It the operating the markets. in that magnitude markets determined resulting recovery recovery difficulties for is challenging has rate markets restrictions been idea stronger priorities in to in actions continue one the to markets. continue and of to initiatives is Europe At our we road in our the strengthening in play environment year the COVID-XX the strategic continue the we the That when impacting many results what were to unfolding, in since we a signs what COVID-XX the first position uncertainty of believe referred our little many all Those more are many expect of which improvements. other direction Overall, need right continued heading are look particularly

financial many in to year-over-year profit this $X.X for in the first results. million. Turning of We X% in was up currency. performance. expected we than of an On a better a quarter, quarter financial markets saw our reported basis, constant resulted our billion revenue increased $XX key the In recorded and demand operating

outlook currency year survey, demand our Earnings restructuring points. prior increased indicated also per improving reflects for ManpowerGroup The of employment profit improvement margin profit decline Operating from the in charges in on up improvements based in this was prior and recent the prior of restructuring in basis in prior employers. period profit our margin increase XX in charges X% points operating was currency, operating basis QX up basis correlates reported was X%, hiring the excluding excluding marking profit the restructuring Excluding the which operating services broad to constant fourth the share XX% a year, sequential significant of year, the a after intentions $X.XX, charges XXXX XX%. results from constant XXX diluted quarter. by year a

also and different compared the across countries XX,XXX returns net and a anticipate Our year. majority pre of employers list employers the noted positive levels in the trends overall which markedly hiring same employment hiring quarter. markets, terms time to end to of XXXX, improvement the the quarter outlook the of of before intentions is improved significant a of XX% the last from previous for topped Among U.S. XX second pandemic surveys. survey major markets,

demand throughout to the for As the demand to the continues been technology skilled related crisis. continue has workers roles strengthen, of in as case be much

increases in sectors seeing now is impacted the industry the for reverting the evidenced manufacturing is back pandemic, shift retail manufacturing demand PMI year. likely of with showing no we're airlines see pre-crisis to However, also they the rehiring entertainment hospitality will as in within indications this levels, shows the second to most also online Logistics positive structural. by data half of as talent strong March. consumer by significant and are of strengthening Even signs signs a

reducing in phases, As workplaces needs implement with that seeking this especially flexibility and for the demand optimize improved are return skills, levels focus were HR a models. hiring reopen demand and and for operational and staffing are evidenced Organizations wellbeing. talent And now workers in we significantly our reassess work they and plans, RPO XXXX strategic seeing on workforce as is greater hybrid their services.

to country We it Jack to the to through are performance you the provide and services details. expertise financials, well now positioned meet over this to demand. like take rising turn I'd and to

Jack McGinnis

in came guidance Revenues quarter constant range. first Jonas. in above currency the our Thanks

range. margin profit came in gross at the midpoint of Our our guidance

was XXX% constant Our XXX% or operating an on of currency $XX profit increase basis. representing a million

basis similar of which a our or prior about basis. on in basis. represented XX% the fourth our a profit the increase improvement considering fewer was down trend detail. After Breaking was phase above our charges X% X%. After organic guidance. the resulted of adjusted revenue currency dispositions for significant operating X% increased quarter This the This of a currency positive X%. restructuring days, adjusting billing impact operating increased from constant revenue decline on XX a end and of net revenue into revenue X.X% in an the more currency constant of profit points Excluding year, bit high margin X%,

the foreign midpoint, $X.XX, improved currency a guidance had $X.XX, to our Walking exceeded share $X.XX and expected guidance was expected performance than tax Bridge lower included average negative than count of four, slide our significantly also earnings Turning from slightly from $X.XX, results added effective on our of EPS rates, per range. a better repurchases lower which share slightly which weighted added exchange that impact $X.XX. rate a share that operational

at offset which a gross gross by in of XX strong on GP from also XX.X%. reduction. basis profit our came A Looking contributed to margin staffing profit permanent lower in at mix XX Underlying quarter. the gross basis recruitment MSP our a from points higher margin contributed margin contribution in detail, was very margin reduction, point growth

review Next, let's our business profit line. by gross

XX% profit. comprised of During the the quarter, Manpower gross brand

professional Experis XX%. Talent and brand business Our comprised XX% Solutions comprised

decline double-digit an the leading in During improvement growth Organic our the was in XX% the our This currency from our organic This quarter Right X% global was market profit which the quarter. fourth X% X%. Management quarter. RPO, gross MSP fourth in a during Manpower X% and growth. basis, the constant quarter, from GP which declined Gross reported growth profit XX% in MSP currency improvement represented constant improvement year-over-year by quarter. increased an primarily is brand Solutions significant brand an year-over-year, our Profit on of fourth concert organic offerings. Town currency business in the includes the gross Experis an the with driven from decline

back Our during quarter RPO single growth cross the in improvement business profit. digit experienced significant in to percentage low gross

year-over-year. as recovery outplacement activity business see run off a Management strengthens profit continues to a previous experienced from Right Our about gross reduction X% in of and

in quarter represented and expense a was million from reported SG&A the prior year. basis X% decline the on $XXX Our the

million, and U.S. million, in improvement the fourth basis quarter. flat compared revenues. excluding a flat the in XX% a charges of Adjusting SG&A The OUP is America The revenue. Revenue constant restructuring trend represented from X% days, costs increase $X America increased $XXX XX.X% basis. in increase revenue dispositions reflected in $X of remaining quarter first quarter of $XX prior currency, the was and restructuring in Revenue X.X%. X% decrease representing consolidated OUP $XX net in driven which an segment percentage expenses constant the margin $X represented as to in points year, the prior on quarter, reflecting currency revenues. million The changes is decline an country year. U.S. for SG&A of XXX seasonality a first Currency and Excluding X% the this year, currency. million largest increased the billion, the from constant comprised OUP underlying the was operational segment XX% a cost reductions. from was prior in comprising the by was million. to in franchise was of acquisitions segment of increase, an XX%

quarter. our the prior Excluding business margin year-over-year $XX U.S. increased in for charges XXX% restructuring the was to OUP in X.X%. OUP year, million

activity gross the growth U.S., brand X% cross U.S. which represents driven in of experienced in the to the gross Manpower Revenue significant in approximately quarter. fourth declined profit increased XX% to XX% when which solid representing off, quarter, U.S. Experis quarter, restrictions the Solutions of skills Career there Within experienced and for Manpower as improvement as results revenue U.S. the trend XX% Provided declines our the the brand rate the U.S. impacting from The quarter. for fourth fourth reductions revenue guidance XX% in which the franchise basis RPO contributed in Management to hiring the adjusted continued in of quarter, growth quarter. clients in X% Town in profit during our significant growth well acquisitions, to revenue on from revenue quarter the revenues. U.S. this the exited quarter. to XX% XX% offerings revenues the U.S. more a X% pre-crisis U.S. XX% expect using the quarter. a second context range on year-over-year. of midpoint underlying XX% days Experis U.S. an comparing experience the in operation second decline in organic To represents for the X% the day's quarter. in the comprised in improvement Mexico Experis in growth and improvement representing and a Right brand and decline revenue across comprised second on-going XXXX the quarter. revenue in of of Experis of growth. no This the gross in The double-digit contributed we The during the quarter programs are U.S. business an percentage business was expected experienced in currency the for expect bit improvement digit other MSP comprised Solutions business decline in single levels growth U.S. continue X% single adjusted in over X% IT Within a revenues constant the the quarter. by the quarter the provide continued from U.S., in the the strengthen. decline profit in Town run of the and in basis, decline to the perform improvement we revenue the the digit transition experience mid-to-high to significant Experis

would end legislation assess of is the is As possible labor of legislation could not senate. in adopted the specialized of could be date advancing legislation business. law. would process the a last of It The is proposed form, enactment Mexico April, temporary discussed considered review we final staffing of expect certain is quarter, following by potential impact number the in legislation the months services. prohibit the new in we types process of finalized the When be on the the and will before our that effective the

adjusted other during further provide growth improvement Canada our decline quarter update significant an the in XX%. from and within between the constant and in constant countries reflecting a days from adjusted earnings the This the days X% revenue Mexico was quarter. of X% global in during revenues revenue XXXX. currency second increase call. increased Revenue represented quarter. in Argentina, by will This Americas We X% Chile. Brazil, improvement represented Revenues from currency, in our quarter of the X.X% fourth driven in fourth X% currency increased constant

currency. the comprised quarter. This X% in constant and X% Revenue fourth OUP by on-going Europe Southern billion quarter Europe France, X% prior revenue $XX came OUP the of constant currency. trend Switzerland. the increased adjusted the equalled margin and Southern comprised revenue in over costs growth at million. restructuring flat XX% of Italy in quarter, crossing increased Considering in in currency, in days improvement reflects Southern OUP XX% and X.X%. the in Europe to was from at France year, driven $X.X of in segment constant revenue consolidated

growth a quarter of performed rate X.X%. to This the about and in well began of slowed the OUP improvement, day's business January reflects in XX% and currency in the adjusted French X% environment. the restrictions to February, anniversary in the decline the underlying revenue constant March increased Although of onset pandemic. we million and as was OUP of XX% margin was $XX challenging

quarter, begin France, despite relatively cautiously we are the improvement restrictions the holding during activity on associates and the second As in we steady anticipate increased modest in quarter. assignment

guidance. decline quarter, million We pre-crisis Comparing days adjusted estimating of was XX% as from the of second second represents revenues Italy X% in levels bottom a to in quarter. in the revenues compared increase in constant the year-over-year of which a growth the are improvement quarter constant the significant reflecting currency, Revenue our constant an currency, currency the XX% in to XX% in we XXXX pandemic. overall, quarter in in this range an to in estimated quarter, of using increase the $XXX midpoint fourth equalled the XX% levels the second anniversary

fourth XX%. year, the XX% This in second with to year. We reduction Italy above decrease the the days improvement adjusted a very flat in and in the from currency is Revenue fourth increased in to the adjusted prior year-over-year from year. that margin Revenue revenue OUP constant will in year-end XX% quarter in quarter seasonal constant prior significant in costs days X% $XX quarter. the quarter. reflected XX% significant which growth logistics Italy the continue growth represents the represents Spain first in This the prior was from restructuring performing perform range increased the levels the million year-over-year to Excluding the in currency activity. from increased X% Switzerland in already constant of a XXXX well in pre-crisis year in estimate OUP to currency quarter. prior significant

Northern consolidated declined the major the revenue markets. decline segments $X.X currency comprised XX% fourth from by quarter, Revenue X% to improvement driven Our Europe the billion, XX% of a representing quarter. constant in in in all significant

in XX OUP XX% constant in decreased restructuring prior Excluding the and year, to points costs decreased currency, basis OUP X.X%. margin

largest Our Northern represented the Europe U.K., XX% market is of segment in which the quarter. in segment revenue

fourth currency, decline X% grew revenues significant which in a X% from quarter. adjusted improvement U.K. quarter, days the represented constant the During in the

and Our performing the to increased pre-crisis strong see first brands. quarter. The business is continues sector across demand activity U.K. U.K. public all above already in XXXX levels

We quarter quarter, currency days expect in revenues XX% growth fourth Germany, significant same quarter, XX% XX% the constant adjusted the constant activity. customer in the from the a reflects range currency declined decline represented year-over-year in also the basis. in which new first In which on XX% to the second improvement in significant

Middle on fourth currency on-going also increased fourth the markets in quarter. increase of quarter, in the from the see Asia This on a in quarter. expect revenues In revenue Russia, XX% same Poland, XX% currency same the quarter. improvement X% driven in an quarter. the the basis currency total improvement quarter. and experienced the was of Northern basis XX% decline Europe of basis in day's $XXX X% in Revenue the The cross improvement XX% adjusted flat from fourth quarter, revenue X% Nordics, growth Although growth $XX In revenue Germany from which to from segment adjusted second the comprises year-over-year difficult growth OUP on-going to X% was same we in which decreased Netherlands an Pacific improvement by in revenue. million. quarter days constant our was Ireland. in XX% days company currency, constant continues fourth Other the in the revenue on reflects in currency. the represents East from strong in representing be to the industry, decline during constant million. to improvement Belgium constant over in currency, the a Germany adjusted decline constant with the for the market decline declined representing in Revenue constant

in X% decreased adjusted to fourth rate in in in from growth which currency, constant slight quarter. year, XX prior costs Japan and Revenue X%. growth points the decreased improvement in a days Excluding represents restructuring constant basis up OUP margin currency, OUP the X% X% the was

quarter. to well an continues currency decline fourth growth the X% other quarter. business equal very improvement in the to in This fourth decline perform revenue days basis Revenues were same Japan Our Pacific constant flat constant on-going we the and currency. East in quarter. and revenue expect markets the the was the Middle X% represented second from in rate in Australia in in declined Revenue which on of adjusted Asia

has annual that results. update to ManpowerGroup Now released brief report, their Greater we'd China their a Limited provide on XXXX like

shareholder earnings XX% previously In remain disclosed, revenue in environment profits extremely growth an an XXXX, China, approximate achieved successfully As staffing and XX% X% revenue below challenging record we of the growth which profit. attributable our to recorded and year-over-year we it of Mainland owners. in largest a increase share the include managed operating and company

We progress and are very China pleased ManpowerGroup Limited. cash turn with flow now sheet. the to balance I’ll of Greater

quarter $XXX during declines quarter, quarter. million more accounts first prior flow million cash significant in outstanding represented reflecting four the $XXX year decreased days expenditures year-over-year year to the in Capital days. almost compared receivable quarter end, prior million the the by day to quarter. During At XX sales free equalled $XX

million. million During the shares purchased of $XXX first X.X for stock we quarter,

of for X March share shares under X.X XXXX. of As million repurchase program August in the approved million XX, we remaining have

of cash $XXX debt of a total was sheet of billion billion, net quarter million. cash end balance strong position $X.XX at and $X.XX Our with representing

and XX-months to reflect total to gross XX%. debt total trailing total X.XX capitalization EBITDA of Our debt ratios at quarter adjusted debt end at

credit the not and did debt change Our facilities quarter. in

addition, XXX In credit facility revolving million our remained unused. for

I Next, quarter for XXXX. the will second our of outlook view

additional business any our be Our those basis, that currency clients forecasting of share in lockdowns guidance continues impacting our $X.XX, restrictions, in for earnings impact per material, $X.XX to which exist to a per share. of assume from no markets we favorable today. quarter On of beyond to foreign includes the second are or the largest range $X.XX that

outlook the partially and days dispositions. Our for our minus context our days of currency guidance midpoint. revenue X% range currency the between A result, compared slight this a XX% in guidance impact levels, would quarter The second to adjusted net second also organic growth decline growth is And of a represent as X% minus constant to constant activity of of XXXX Adding in is range the increase in the XX% midpoint the is to pre-crisis is XX%. at constant revenue quarter currency slight XX%. offset organic comparisons by billing revenues.

the the tax be will We effective quarter expect be year. up the full now during our previous XX%. second compared tax quarter will midpoint earnings sequential operating profit on XX%, rate we We Based that estimate second year in approximately to XXX be effective to another from XX%. basis at quarter estimate our mix, improved of of are continued margin improvement. points prior the estimating X% This reflects rate strong improvement a the the underlying

or now to does turn guidance I will estimate our repurchases, incorporate restructuring share usual, our Jonas. weighted As it average back shares XX.X additional million. we be to not and charges

Jonas Prising

diversification, has Jack. innovation plans our environment you, initiatives. investments slowed not digitization our Thank to accelerate and operating challenging The and

the as of disruption deliver simplify our all PeopleFirst necessary. uncertainty, of data combination analyst plans Our by that of global improved Solutions And it along and the all personally helping technology is us is ManpowerGroup us the industry manage good driven enabled ALM confirmed. are approach been and allows recognition digitally has locally collaborate efficiencies. confidently prioritize and recent remotely realize teams we in this both to knew but Solutions. our A for example Workforce to and Talent Amidst

of our proud and to for have the as strength a commitment our very serves is our suite our and company it of only we're people power the to pacesetter designation, for received positive to platforms. good recognized practices. business And our and of the have are strategy. We around component driving also ESG technology been example in globe important the change responsible for a societies industry

ratings. have We a highest by been business EcoVadis, the a trusted sustainability provider, awarded recognition

and Gold of companies placing level, all the XX more Silver France have than businesses assessed. award countries. platinum Norway EcoVadis Platinum, We Our ratings us achieved the X% global now and in in top

of most company ethical For year, people by are and These only ManpowerGroup are power testament world. the commitment recognitions work Ethisphere pandemic, and ethical to the to to of and for award. people way, placing earn the world turning dedication our that company. world's change jobs call has during has like a millions into global I’d Q&A. been Again, our sustainable we of the the also recognized open meaningful XXth industry to a in as the this keep purpose the now to Operator? sustainable in a living employment the

Operator

you. Thank

Steinerman will session. the of from begin question-and-answer first Andrew now [Operator the We coming question JPMorgan. line is Our Instructions] from

line Your open. now is

Andrew Steinerman

Hi, and me second I of set XXXX. Jack, a how ask you year-over-year Jack. you to how and revenue the did both like a question referenced quarter you let reference really up guide. Jonas

X.X. revenues, which which a margin second basis the about points operating X% when I get like below XXXX revenue What I'm midpoint So think margins, think XXXX second that for the XXXX is about below I when second was the little X.X quarter the to I by I is to be guide is think operating level, context. quarter second XXX quarter, quarter puzzled

why are And different quarter the down so only from is revenues X% operating big versus if levels? those margin my XXXX second question

Jack McGinnis

going the process. still Thank say keep mind is the through deleveraging I you think Andrew; would thing to in I we're

with see bottom down that GP our revenues with held in we dollars QX, the what so in And to we costs pleased very we with we fact in the higher we're our fell basically were. higher line QX line that relatively estimated. And the

QX to it are see playing de-leveraging. in starting effectively the does out the that's a was forecast. very But good And that that, reflect we So result.

part still say revenues and you would process. forward. reason of that and improvement is dollars are see forward, biggest increased continue expect, our great operating improving, GP margin which the through on the as cost that that's we to we're demand although in would forecast, going that's, overall side, going we So And profit see going I'd

what would and the really sequentially, margin sequentially, we've I operating very, good in profit is focus that's on think three seen last on-going very improvement quarters. over I So the

Now basis quarter here in of the and the more improvement, points the XXX continue good with first operational coming that. very in up and as quarter, more we year-over-year, in benefits and the second getting to revenues back see leverage the

that to continue the think as to I strengthen So continue will that demand. in we increase see

Andrew Steinerman

Okay, much. very thank you

Operator

you. Thank

from Capital Our Jeff BMO the of line question next Silber of is Markets.

open. is line Your

Jeffrey Silber

Thank you so much.

had your really get operating from expectations color a beat more where from? Can strong we bit in expected that You beat really little performance than quarter. came the to compared better a

Jack McGinnis

Yes, Jeff, to color. this is Jack, I'd give be a happy little you

the very Italy. if can see say you biggest at growth look strong our in I'd operations, So you

the our about businesses, did continues talked RPO the very, in above best very the be great first has that strong. very, the U.S. in what's U.S. And I performed are very strong. see the our that's U.S. the we very we've past, quarter, talked we obviously levels MSP Talent operations. above this definitely back of We currently. so to Solutions into Italy very mix about double-digit continuing coming about In there And So and would note performance the great. say saw continued expectations the Italy strong. strong first growth And our U.S. was the next quarter. quarter from that we in XXXX

of though restrictions of did in during a they've they strict did. based the course more quarter was U.S. that a profitability. They they would not the managing So I progress big contributor markets say did environment some have restrictions. But that to even been did good with done the place, that, have very difficult the their other costs good their very managing of fact very, has outperformance. a a the France despite job the the not as France job in And on

businesses, the nicely think to expected they of U.K. So call I would performance. performance the than out of our very biggest contributed I all lastly, And great better

we going crossover quarter U.K. the saw on forward highlighted well. performance the U.K. takes that as the is well. So forecast into the new that actually U.K. brought performing us for fact is growth. We their second some clients to and very improved The

So, the drivers, Jeff. businesses big largest were our four

Jeffrey Silber

Okay. I U.S. we're That's jobs. I'm the companies really in Thanks. focus you're if headlines If blue-collar seeing a scrambling talent, on doing so, lot specifically And helpful. what of could seeing that? you're about for if that? of wondering

Jonas Prising

seeing something Jeff. that U.S. Good And morning, yes, this is we're in the as well.

has there So been workers. of a of supply tightening

some Now, payments, the to is to unemployment Easter related related that as of think we that is of extra the as well some the Holiday, stimulus payments.

temporary. so latest supply that have you to But environment. it's And Labor that normalized a sign so And And penetration moving to overall, strong. we taking a was. So as to people more expect good the that we will adjust might the Report, really we great is already the to be is where think are seeing, are that see the advantage rate of those. effect is But it's whatever U.S. market higher. seen the as that's back up it coming on past Market continue well.

Jeffrey Silber

Okay, so great. much. Thanks

Jonas Prising

Jeff. Thanks,

Operator

you. Thank

Our Barclays. line next the of Manav question Patnaik from is of

is open. line Your

Manav Patnaik

your helpful. obviously, once reset. still we, was point some the period, and a starting this things Like, comparison how guys was gentlemen. reopened. whether about us clearly, things been it's Thank give And you you. XXXX, there? just haven't Good to are thoughts has versus think open, I just growth multi-year I curious of at cycle was you fully if of because morning, But hoping The down if

Jonas Prising

that out this at play and are the from of of look We traditional really the new think two seeing cycle a And that now. we recovery we are we're the dynamics that seeing the the perspectives. beginning of trends beginning now

of as recovery. despite pleased saw cyclical lot we're a major very all, that First in we our of to markets, a lockdowns see the continued

ManpowerGroup services. and the appreciating structural services at flexibility. increasing Talent in ramp-up are their as time, of started more flexibility, And workforces and some more them terms for have such same really companies the products companies a would phase in in that strategic where increased So and of also our we demand face that to saw indicate also Solutions. strategic products we of their And to operational provide for we're to enable demand the solutions

both this business. of positive So is start we're for see seeing really trends being to shape. the And take these very we

Jack McGinnis

operating for at margin the Manav, And that. then, add opening I to the based the question on of second quarter. regarding profit would queue the just the

is I to their restrictions pretty see take markets France the we really -- as upside loosen and future, opportunity there think hold. like in the -- have recovery some the thing good still

So, is for seeing the as the as other and going until the down operating some But our pandemic. countries at prevented that's remarks, levels. our still our to we close those really two them we improvement they they we when second XX% anniversaried continue France the go leverage quarter, look recover, to help of prepared saw operated as forward. they really XXXX to versus of the that XX% quarter, restrictions down mentioned months in from first And

under are come are that restrictions those where there would to our dynamics ask XX% those would we And to once will operation, December, fourth XX% will restrictions pent-up the I the when we saw that revenues item as quarter, expect be lifted, people I lifted. in still we XXXX saw think through remember of levels. demand So that's biggest in our one is similar see

Manav Patnaik

all recovery being just one That's is question here? comment just to Got a this Or there helpful. competitive like of rational was, had the you get drive other I just are it. And the environment bit on the very kind Okay. competitors here? could

Jonas Prising

We rational pricing, a industry. I is if it competitive overall, are still. in But look very at

So that's sign. a good

is competitive drive number environment to the think a countries. we've good discipline. I But strong very been in pricing a business of able with our

of well we've expansion rate the a expansion of good number U.S. in the margins, So seen notably bill some countries, good in as

going continue expect forward. also that we So to

Manav Patnaik

Right. very Thank you much.

Operator

Thank you.

the Marcon from Our next Baird. Mark of question is line from

is line open. Your

Mark Marcon

of digitization talk quarter. a things. and Hey, provide little if comments wondering the have quarter in that bit some you're granular talk you first the recruiters, Whether the the term? into longer ahead efficiency? underway. upbeat of different the Or can you the account Jonas, a And results about you with improved Could nature sense strong do about managers, congratulations competition? are Is couple the that Which on second the the just going like feel efforts competition? implications you you you are countries One, I'm speed the for of here its of how placements. even of the getting advanced? that's keeping most some what

Jonas Prising

Mark. Thanks

AI it's And I really we would those have remotely, we way the individuals to a to comprehensive little roadmap. to tools. And middle the we recruiter data we've the I in what do give to on productivity back the calls, from ranking markets most for But would a degree a technology has and alongside discussed to transformation you starting the most the the impact before orders we're of leveraging received. from recruit any tools be a bit have to all this pandemic, they've serve up recruiter. front. a earning color that we're past and as say, a We connect likely say recruiter implement difference see candidates most number candidates greater would and great we're to were really placement, navigate viable us helped of notably, able able the of with perspective, much started years to some than the the number In for of of ago, to our

candidates as those perfect she or finding the match. the can means, as fill orders candidates the that with starts that well to And to rank both they served work. So up orders. and we he when immediately down get their to the connecting recruiter And

them a a for save terms of time they find of lot lot associates they and in change the course, to in France. match current us paid. assignments, helps are candidates, as new for that able sending people creating out of for our And we do assignments, frees the we talked time their find up availing instance, of And a a both that mobile And apps themselves lot have got what on when self-service they are they lot that about capabilities to. our So of assignments. and is, previously

human Mark, faster move we're directly, magic. associate time of as lot to time of that enabling up orders in the the fill activities ones it's all or herself of heard a for those ability our talent to match say by and be or take technology. lot controlled well technology more So done and that with combination recruiters, the by take away us But prepared you increasingly transactional the the up with seeing a they that creating the that that's enabled used of or either better a remarks, I and say our are the himself would

and just a early for It the recruiters been not still standalone that conduct of assignments trained really talent the agents to experience stages those very it's also the showing that And So the difference. technology we is at think is MyPath of this. basis. our are on we're

have a to so efficiencies. some further as gaining perspective, a way gain growth to go growing still from we So as opportunities, long well both business, our further

Mark Marcon

some to then, margin implications correct? have obviously that And with longer term, would Great. regards profiles the

Jonas Prising

As we available satisfaction, the should to to to talent on fastest our able a client that profile. very yes, we match margin orders satisfaction, impact have will can our positive on candidate that also best the optimize fill and the our the be

Jack McGinnis

I just add to And Yes. Mark. that, would

the good part point U.S.? We're front in business. talent our of GP starting of your to as The of that We're been seeing U.S. suite that business in Experis think benefits is part margins, very of office implementation. technology power business I implementation. specific very RPO strong efficiency. our GP so what markets to see is solutions the the strong, in been about we're think, saying, I part power suite margins the

provided all the of more about to app as time see talked recovery convenience processing is We other we we market us will hold, be That's we our think even we've to -- of and in in things. and the the point comes types when those take And associate, really and our leading expenses efficiencies would take it continues past. as for significant which think France, I about the associate to of our example data associate that back. come

countries. good back in see, the some GP efficiencies more and as those back those in we and in through come margin And start profit examples operating margin. come more we come leverage, driven volume start where have a that So, really the to see line operating we'll get to definitely revenues both and stronger way

Mark Marcon

with I I is is Mexico. to sense? López initial then, Senate your But the relative President, Obrador’s And follow to the considering was proposal still general has up what now in considered know, it. a Great. how quick initial being the just What's wondering, regards -- changed proposal?

Jonas Prising

to point, drafted, this how know, hard in be will devil it's actually the At is the the quite Mark. detail in legislation because

not our Mexico. how and written are be our course, detail the to going rather, and not very we in Mexico, applied we're industry the what's fine gets in is still it's -- impact discussion at really how Because of much also debated. at last from away So employers in ultimately large determining on or along than further being earnings call. much further it from It's our

earnings able being next July. hope call So a in that's we still debated. detailed more to update to on our provide be And

Mark Marcon

may you you leadership appreciate that. bit Northern about that? I Can change in little And Okay. a Europe. have made talk a then

Jonas Prising

the comes as most from But region. people Riccardo we from very he's prior have profitable around, European global we our American We talented move that's Latin assignments to and Europe Pan our well. had executive time a going to time, and Barberis Northern do operation. country take over

bench very in business. to course, most have the region that's continue countries we Europe our where in the growth profitable going experienced seen, And Europe. growth executive you'd lagging that's rates. Northern in it's And So drive as one is the to Northern operational also of of the

in to would that to it we expect forward forward. business look impact drive helping his and we us So lag

Mark Marcon

Thank you,

Jonas Prising

Thanks, Mark.

Operator

you. Thank

Our next the McVeigh Credit from is Kevin Suisse. of question of line

Your is line open.

Kevin McVeigh

so a Thanks thoughts Or to any client if that much. it into the was any guidance, stimulus Great. the around how as of Jack, factored thoughts at kind QX? Is you discussions? all? on

Jonas Prising

impacted So the you're U.S. also are believe, just supply temporary, We And being Kevin, as we're by the run a that answered people not this workforce. more temporary come payments that some that are stimulus But question I stabilize ago. on seeing the I'm those that to out, those once while believe shortages a of to a do staying we stimulus. referring back effect, the we normalized and it environment. we will believe engaging and sidelines and in is funds assuming

Kevin McVeigh

quarter. specific as any to Helpful. And the the rate then, shaped bill how Jack, in give can numbers you up

missed did that. I I If apologize, you

If you could repeat that?

Jack McGinnis

would of good Jonas question we where across well. don't as some of see in recovery further is speaking, terms speaking, on the say start I in rates. the at about ability we pricing your take rates businesses have to But European details on good necessarily generally to I those bill Kevin, opportunity I'd But most going momentum hold. really say, list top in seeing we of our Generally markets. the talked positive positive of to see improve don't to I'd kind opportunity. our I businesses. we That's think U.S. our and put what the bill we give get say would Japan we're momentum.

Kevin McVeigh

Thank you.

Operator

you. Thank

America is Gary from Bisbee of question next the of Our line Securities. of Bank

open. Your is line

Gary Bisbee

took other about the investments but were doing. potential you revenue? bring how back. you're Or areas back you have long for or revenues that. you're and Hey, of efficiency Thank to more on there you are out the staffed And going you I back where year, last from year? of any shorter certainly SG&A the a think term things guys, few that in adequately cut the sort to back term to you to with next back cost step color pace -- next sort SG&A business? the good implies all think But little I think over into should morning. can technology Appreciate guidance the ton are of given Do Obviously, several quickly quarters? functions is of and line If starting think headcount QX coming costs come we bring a quarters, last you.

Jack McGinnis

Gary. Thanks,

I'd data been you the end go of the say of that's say, to the XXXX. increase But X% of FTEs, year-over-year. were Now, be our goal that we've cost is we back end to was bit prepared point. give in doing. just closer at demand. down to what And to of I a our would for back always a still At the bring X% end if March,

the And So are those growth been investing opportunity. markets the our seeing in in progressively we're business increasing FTEs. great we've that

did increasing thing steadily on doing U.S. that profit gross France, been We're in we've dollars the in investing So our we're it perm demand perm seen say, I continuing positive in perm paying in strengthen. year-over-year. the the And with that is to of we quarter, Italy, recruitment, about that earlier market first the see doing side. off U.S. consultants the carefully. hasn't level Experis growth. into But the same talk certainly I'd We're in business. same

to to the And when headcount. in in once that start we we're that we'll recruitment. We talk roles restrictions expect well currently loosened France. about doing perm very ramp-up then are And as kick in specialized

the game When carefully. at recovery name looked we XXXX, watching we're something is that ratio. of So the was

we of much the can to GP offset the flow-through. Now how cut So, SG&A declines? the name is game GP

line? what did can we're that we happy bring first quarter. that's with down And continue GP very going much we to of we're to bottom how manage going how And to in the this in increase So forward. the

Gary Bisbee

And Great. then the follow-up.

to but these rethink, key the host guess the further businesses? of opportunities, even Just about drive workforces, a And, of there that's What's solutions, businesses, any whole things on And penetration now? of happened? different what's their to as obviously to businesses? starting Are performance I there. strong these adoption businesses try further upcycle

Jonas Prising

We starting see Gary. we're that, think to exactly

opportunities of last how six and any solutions big the space the the some logos during we about months. our over pandemic, losing So, not won in clients and talked we talent

to with how in very Our they pandemic. about bring pipeline thinking conversations really new strong. ways their contingent they clients, or looks be on in And workforces, perm are post

then only here the Europe. next be much where these what mature rates and especially And growth, cyclical the the the to also of in that's U.S. in U.S. many but will lower where it rates, not the in client as very, we a to the are see becoming most higher, growth, for of strategic pandemic good than think very post also but more offerings the leg that's is we'll both we companies. And think which So is certainly think this catch up is our those ultimately, attractive will market, moving penetration in the solutions structural secular them of where we penetration -- in and opportunities U.S.,

Gary Bisbee

color. the Thanks. Appreciate

Operator

you. Thank

Our of next of is Sommer line the Tobey question from Truist Securities.

is Your line open.

Tobey Sommer

to Thanks. Could further long services? may see And when of direction GP your in your kind higher that term you talk medium manpower mix being what margin about to the us we to over the see some the you between business? brand capital other core shape in deployment

Jack McGinnis

to Tobey, I'd Jack. be Yes, that. this happy talk is to

on GP part update So -- Talent would we pie. that's back a I'd say, ongoing the as last do mix. I businesses an terms overall of first And been give that to certainly our the the very Experis particularly the at you've you year, strong improvement. look if know, say, grow quarter Experis, coming in back that well. seen, in Solutions become I going the typically to of and goal is bigger continue to dollar able We've to

mix, business to part the part we expect see medium become term. the over that and of that would bigger So that grow a

be a from When those on our we've think we've capital think past, at well. number businesses professional one you had comes in staffing that side, that's as area done an we've I I an side. area eye an where the the been what look in going if keep is that's of priority is would Experis for we and to that And opportunity. open one organic Talent And growth side Solutions. out well well. But focus do as the M&A, the it pretty as allocation

same. the allocation, capital is a The our number excess dividend from So, priority. cash. our We is strategy look at one

cash a will that opportunistically. acquisition we'll to doing our repurchases return shareholders cash. If the there to priority excess share an for is there as isn't, continue to if at that, that look but get vehicle Beyond

Tobey Sommer

jurisdictions tax an legislative effect company rate which the And years? Should and of in follow-up, as changes the normalization have absent regulatory the profitability my further Thanks. to operates. in the out different on tax

Jack McGinnis

will, Yes. It Tobey. definitely

think a seeing development. even we're I this positive year;

in second we're terms first improved ago, year with what thinking effective for the mix to quarter. with year. increased a full And lowered earnings that what the we projecting tax XX% XX% time that that for quarter for the earnings profits the pretax forecasted has rate the were the the we months in year, increase of at and rate effective three So, full for mix

remarks. everyone pandemic caught as continue the changes tailwind a to will be prepared tax to I said wanted for to in positive I as pre us France make pre to So And profits continue levels. before, the increase in sure that

over that. So, see we will time

to Now we XX% tax get to of improved as pre profits. XX% gradually back levels

positive XX% reform We a in forward. for happens the those CVAE to other already benefit that to manage geographies XX.X% have with as that from any you already know through. we'll any tax reduction. terms as rate. We changes. of again of other France we year corporate tax we'll what tailwind that's is the But And And ignores And go tax come us do said, changes. they going as has their great see part so of step down next

Tobey Sommer

you. Thank

Operator

you. Thank

of the from line Our Sachs. of George is Goldman last question Tong

Your open. line is

George Tong

performed have rate recovery revenues early France are moving on the April? impact a discuss basis in XQ into Hi, you that revenue sequential France of month there? thanks. you an Can Good over to morning. Do noticed restrictions how continuing and on month through in

Jack McGinnis

associates weekend guess is the in strict March is down the I underlying steady. important XX% the anniversary the That's an But January would we biggest indication look the And of relatively drop. you big an basis. kind of they and think was on were jack. prepared is at of then as of bit continued and what's thing remarks, a into part I But at first that it I our most to assignment on been funny well, hold is I just really running as that where they half indication. about gives And so the the recent This Yes, operation and Easter and think have for through quite fairly really, the happening because say France, gave generally with look you which what February, of curfews holidays have if ticked speaking, continues we month, the a and a George. week we up and restrictions April bit. April. And forth. little an restrictions. An

performing say, those been are business would has restrictions. considering generally the fairly well, I restrictions, countries there in the actually So where performing

country turn the I strong, like if Italy strengthen. over think, course to another I Italy, overall, was very the quarter continued of to

XX% to adjusted X% XX%. So on went a growth in January in days growth to basis, above went February,

restrictions levels. really in already the to even but strong is for haven't impacted seen work progress. with purposes. business, think Italy, which and work is one in And very, restrictions I those And as place again, the mentioned, XXXX to those So, Italy travel ability restrictions place third in has above I the already very U.K.,

a them leaving March with saw And growth had adjusted U.K. days XX% in we the results So very first strong rate. quarter. the

of So, And I'd we well. would would say, and that to expect gives for as those further we generally a over into see of managing our they're a some biggest businesses. flavor time would speaking, we bit restrictions ease, QX, the start three restrictions improvement. We look

George Tong

could I revenue impact And impact do France, ongoing it. Got pace most see of from a Makes restrictions follow-up sense. you from the guess that's recovery? where that or renewed potential beside

Jonas Prising

anywhere most restrictions Israel, vaccination are rates of what with in and where looking I'd lifted. they be happens past at is and the XX%. need to rates up We've seen point, the the companies evolution say that thinking George, this are about when pandemic, the to from the vaccination where

U.S., growth strong and behind in like And their best in at vaccination some for rate. in rising. of rates then the Europe robust And notably the at are America Japan economy observed preparing additional vaccination we on And what that's are existing XX%. Asia, as with Ourselves the to countries countries a their about being here going the what they confidence hiring is restrictions. be will lockdowns, and in lockdowns, XX%. recovery the they [ph] In the vac other why side. believe rising, And significantly Latin or out about ability U.K., Chile coming environment have despite economic are there's even workforces the to rate, companies

is at is unless lockdown, imagine infections, reversal point. this So would virus to difficult in significant there some that which a big necessitate

preparing I are looking that think global for companies to in external PMI and we you in workforce companies will that see lot it responding past you can can the as the accordingly. their the outlooks strengthening the the well, are a And see continue pandemic data services data, see recovery. of and

George Tong

helpful. Very you. Thank

Jonas Prising

Thank And first a come call with second the to we forward earnings that, again in of you, all speaking with of George. quarter end the week. call. look for we quarter to of earnings our And rest Have July. our everyone. good Thanks, you

Operator

Thank participating today's for you in conference.

disconnect. now You may

ManpowerGroup (MAN) 20 Apr 212021 Q1 Earnings call transcript