MAN - Earnings call transcript Q1 2024

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Operator

Hello, and welcome to the ManpowerGroup First Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this call is being recorded.

I would now like to turn the call over to Jonas Prising, Chairman and CEO. Please go ahead.

Jonas Prising

Welcome, and thank you for joining us for our first quarter 2024 conference call.

Jack with Officer, today. Financial Chief McGinnis, me is Our our we within our And convenience, included website prepared manpowergroup.com. of for your section have remarks Relations the at Investor

of going go start will the our before now then results more will of start share then in through through cover guidance Q&A harbor And will quarter, and session. Jack by the I language. the we highlights detail. the and some first Jack thoughts some safe I'll concluding

John McGinnis

includes risks forward-looking or geopolitical based forward-looking to obligation call statements. including These Good statements subject materially and revise morning, conference or current beliefs. update everyone. are economic statements, uncertainty, differ forward-looking might We to from concerning This assume expectations statements results management's statements. any on known and those no are Actual the which projected and unknown uncertainties. in

results and information this Slide may cause earnings made X of our actual in differ presentation further statements non-GAAP factors measures. that reconciliation forward-looking of to identifies materially call release our regarding and

Jonas Prising

and clarity quarter, uncertainty in,– of we markets, Europe, economy projects see resilient hiring, the America remains remain stated in employers trend. non-critical though this more quarter markets a be and that yet many their pausing spend Last in Labor persists, until North cautious the in to emerges. outlook around cooling One Jack. leading continuation deferring we Thanks, are strong.

talent reported cornerstone their optimistic existing economic and recent and increased holding of the beyond In due the in leaders current today. look Outlook time, economic employers that are business on clear feel caution the success the our most uncertainty, same uncertainty. they their skilled workforces they future, as is ManpowerGroup Survey, Employment to are to to hiring about At period

and persist, how shortages demand a some environment. broader strong talent despite cooling skilled workers remains for That’s

staffing has first. trends, labor temporary markets been impact North most Europe. environment softening lower levels on felt Our been here of industry edge at leading Demand and in has remains market the in the and for the of America running

seen in in various however, other activity at X the stable the stabilization levels. notably have, in trend also albeit European quarters. now low to U.K., over continues markets, at markets, recruitment key Permanent most some last levels also continued U.S., We the but

said, an With is step growth, inflection an that encouraging call is it to stabilization at out demand. towards improving although too often first in point early still this

and market We initiatives on generate continue to current focus to conditions with navigate maintaining demand us increased agility the that dexterity,— sales strategic and improve. when environment greater and productivity capture growth position driving to activities

our adjusted. quarter in billion, Turning in results, first down to financial the revenue X% or year-over-year currency, as $X.X down was constant X%

losses, EBITA Our $XX in million. business decrease was translated representing the for for a reported Argentina and loss EBITA quarter related Proservia for currency minor million, constant our a $XX XX% of Germany in was year-over-year. Adjusting first run-off currency

quarter, Reported share Adjusted while and X.X%, basis. was share per an on XX% decreased was per on EBITA adjusted earnings margin Earnings diluted was EBITA adjusted and first industries regions, exist per our Europe, Latin demographic I The Pacific, spent Asia North and the teams year-over-year In groups. America disparities across time market in labor constant reported basis, was $X.XX earnings margin share currency. and diverse, global $X.XX a X.X%. with is diluted America. in

Demand demand see Asia resourcing and we this others we're corresponds subdued seeing. seen with in While America continue have Latin Pacific experienced remains while workforce solid, North the America losses shifts growth expansion, except economic some for for outplacement, have and, to and downturns, and solutions. sectors and in job Europe, and

is the and for green the as create industries, grows. the specialist these the critical needs of time, believe for the accelerates digital that workforce same a the role ManpowerGroup play build filling a big has to the rise in ability and adapt demand future. clients Amid strength talent to new we these as we shifts, transformation our expect AI At will across can pace in transition transformation of opportunities at

take Jack turn you the through now over to detail. results will I more in it to

John McGinnis

in the midpoint quarter at first of guidance came currency Thanks, Jonas. our Revenues in the range. constant

adjusted, in our at of gross guidance was reported range the range As and profit midpoint came margin our a on above basis.

As $XX the decrease currency year a representing was period. constant adjusted, EBITA XX% million, prior to in compared

points adjusted, of came of in at midpoint XXX representing margin range, X.X% the was guidance decline As and EBITA our year-over-year. basis

year-over-year quarter, the impact an currency movements had foreign results. on During our

drove adjusted. X%, unfavorable the of constant to impact days U.S. to in than guidance. X% our revenue compared constant translation revenue X% decreased currency a better adjusted the Foreign X% as Organic or trend decrease quarter, currency the dollar currency reported slightly

Argentina EPS share on in which business. the our earnings X, the our to minor Turning run-off Proservia to included business hyperinflationary bridge translation currency related reported non-cash per related foreign $X.XX net $X.XX, services was a Germany, of Slide the of to loss and managed

Excluding was $X.XX. these EPS adjusted items,

positive included midpoint, X operational a of cent, lower share of due average a quarter, results the our had from worse of our impact stronger cent, which guidance, and currency positive Walking expenses negative a and which guidance a than cents. impact a in cents, weighted performance to foreign shares X had of impact that tax X other rate had interest impact was our a X X cents repurchases

in fourth from declined decline basis, business the the Talent constant currency RPO by Solutions, by brand of line. decline line and Year-over-year, Within a the quarter, revenue our XX%, revenue revenue Solutions our by experienced Talent review X% a the business an year-over-year the quarter. declined with Experis brand organic trend let's had XX%. the Next, Manpower on brand in

improvement compared on MSP quarter. Management reflecting year-over-year solid were period, the experienced prior year the from higher fourth revenue quarter, flat revenues sequential in volumes growth basically Right the while to Our outplacement business

to in due mix Solutions reduction XX our recruitment, margin at Looking lower our recent XX.X% shifts GP Proservia after at a activity contributed trends. Germany of quarter the to RPO, including came for and our permanent continued while adjusting run-off the solid. Talent activity contributed as gross in reduction, transition point a in remained basis the in business. basis profit margin Management gross Permanent Talent point for detail, basis volumes, consistent XX quarter improvement points outplacement margin of a Staffing margin career be Other stable point quarter. contributed items resulted levels Right the increase. quarter basis in as remained Solutions solid with at hiring XX first XX pricing first within lower margin

to our line. by Moving on profit gross business

brand gross comprised the During Talent professional comprised the Experis comprised Manpower XX%, Solutions of profit, our business XX% XX%. and quarter,

decrease fourth quarter. decreased decrease X% basis the the currency organic During an by on the year-over-year, in consolidated quarter, gross constant X% profit a our slight representing from

fourth gross brand currency in additional Manpower decline organic decrease X% X% in profit quarter. related a an Our mix of decline the constant reported year-over-year, the representing from

Experis continental XX% improved in quarter, brand the quarter. decreased currency in sequential Europe. organic our slight profit driven in in fourth constant profit the XX% the representing decreased in constant trend Gross a fourth year-over-year, additional by decline representing decline XX% Talent Gross decrease from in XX% the organic from Solutions an year-over-year, currency

expense while Although trend quarter, an RPO in fourth improved relatively experience improved million. solid activity. Reported was SG&A volumes MSP fourth were outplacement the decrease to stable from GP slightly. Management quarter the continued $XXX Right quarter, GP the from the experienced year-over-year

on a the X% headcount X% fourth SG&A Proservia XX% an Germany decrease basis our in business, organic on of year-over-year. run-off decline reductions the This the year-over-year lower adjusted quarter from reflects was currency constant representing Excluding basis. of further a

medium- long-term worldwide focused are Our finance efficiencies and service cost drive back-office functions digitization expected nicely functions investments These drive leveraging enhancements reflect on shared expenses strategy global through corporate our platforms. centers productivity transforming investment. to and will technology leading and and strategic further this progressing our efficiency across and are technology

largely currency as of $X to represented million. a of Germany costs expense the XX.X% percentage of SG&A constant in quarter. Proservia expenses were first operational restructuring Adjusted The $XX quarter. underlying year-over-year million note SG&A there million. run-off charges pleased I'm decreases and represented no in currency $X during consisted The the changes of revenue

was business margin OUP quarter representing X% The of OUP of comprising of prior was decrease Revenue Revenue million to an the XX% our days-adjusted the Americas compared the basis. costs. the representing decrease OUP after revenue. in prior of constant U.S. $X.X adjusting was currency year. U.S. was million $XX a $XX X.X%. XX% on XX% year billion, quarter, OUP is in a $XXX compared for country period largest U.S. year decrease X% in comprised quarter, Americas the million restructuring revenues. margin The segment during for was the a and the to representing prior segment was in consolidated the segment, the minor X.X%.

in The Experis X% during in Experis stable XX% the decrease brand profit Manpower U.S., the first Within in fourth of XX% of decreased other U.S. quarter, Within the approximately the items XX% the the U.S. the the Revenue improvement profit XX% increased an IT comprised project from U.S., the short benefiting reflects comprised was quarter. in revenue quarter fourth the quarter, during for in of duration quarter. the decline Experis the quarter. in the Manpower and gross from brand IT healthcare XX% during decreased the which activity skills and U.S. the comprised brand revenues. gross quarter.

first outplacement Management gross fourth the XXXX, we quarter permanent XX% reflect revenue the strong declines to as from compared from the in the to of the The increases. more stable our fourth overall representing business, of to U.S. in the the year an in U.S. for improvement compared quarter. slight quarter. contributed decline quarter, revenue the X% decline quarter revenue level a expect pull in Right a in a and as anniversary an year-over-year of significant programs RPO demand Solutions revenue the our business decline, period. business decline first quarter, ago second within in slightly U.S. the drove profit In of improved quarter U.S. back XX% continue the saw experienced improvement decline the hiring we Talent activity fourth while in revenue MSP relatively

basis. of date X% consistent and quarter the XX% in comprised the a representing and margin quarter revenue was $XX in in of XX% to revenue constant on in Europe currency in our the the Southern Europe margin decrease segment business a in days-adjusted constant experienced representing a was Europe currency. our XXXX was million billion, was OUP in X%. Activity Southern quarter, France with currency. quarter. consolidated for France million $X.X Europe the the constant of $XX OUP first comprised OUP is decrease X.X%. April trends decreased Southern in quarter. was business Southern revenue XX% OUP Revenue X% for in

also are revenue for decrease a reflecting second $XXX of the will a a France OUP margin with quarter first have Italy year-over-year $XX to quarter the and million Italy X.X%. days-adjusted estimating quarter first on constant in the trend in in million revenue X% estimate trend. the be quarter, currency the basis. to We in equaled second Revenue currency. OUP compared first equaled consistent slightly constant improved quarter the We was constant currency in that trend

XX% comprised a segment Europe of of consolidated Northern XX% currency. the revenue represented Our constant decline in million quarter. in $XXX Revenue

$X the was X.X%. margin As OUP Proservia adjusted million business, to and run-off OUP exclude Germany was

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

quarter, compared reflects U.K. from This basis. on decreased quarter same basis. from on quarter the the revenues During XX% a of revenue trend a trend second a estimate the currency quarter. constant We the similar the decline year-over-year first fourth rate stable this to in days-adjusted

the adjusted Germany, currency constant days-adjusted in in revenues X% quarter. In decreased

quarter. The completed services the are business substantially of As of the slightly quarter expecting previously reported, million, managed the completed client Pacific the $XX increased and year-over-year OUP organic constant revenue quarter, compared comprises Germany revenue. in margin X.X%. down will in the be equaled XX% company representing Proservia run-off the In OUP activity first and a of second a XXXX. segment was was revenues X% was wind of East currency. the quarter $XXX second Asia our In decrease final Middle total decline in we to in million of quarter, previous

to basis. currency revenues pleased segment business, Japan which segment in growth we on of quarter. remain XX% days-adjusted sheet. to and with XX% the In year. days expect million is in quarter, second At strong sales largest quarter. I'll now Japan, represented in Japan free during compares prior Our Revenue quarter about balance XX of revenue first turn a our cash flow represented the market million flow in to outstanding We days and a and the performance very the the in continued the consistent $XXX decreased quarter days. $XXX the strong and end, was grew X.X constant APME cash

$XX first During the million. capital quarter, expenditures represented

of shares for we XXX,XXX stock During repurchased the $XX first million. quarter,

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

debt debt sheet cash of equaled balance and million $XXX $XXX quarter-end. Net at million total Our $XXX quarter million. of with the ended

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

and during as quarter, unchanged debt remained the facilities displayed appendix Our the presentation. of the credit in

of Next, quarter first continue I'll second the that review our forecast America XXXX. to April North be date, quarter and our and in Based challenging activity will on quarter in outlook the for second trends Europe. the anticipates to

our cents anticipates Our forecast for $X.XX, which be levels activity. quarter forecasted X earnings impact of The estimates to related at the impactful. excludes cents second guidance recruitment to and the also ongoing slide, currency QX With of but $X.XX the guidance includes in the the that which per bottom impact currency a which of of is of range final translation disclosed also an quarter foreign stable, the the of X business. Proservia Germany we share unfavorable unfavorable are range to permanent Peso, foreign per said, of rate low share Argentine are includes for impact run-off forecasting the

between of and decrease the X% Our a revenue X% midpoint decrease. range at a guidance and is constant currency is X%,

decrease impact in days-adjusted additional on X.X% contributing currency same Although quarter slightly first a year is of about on organic are constant net second midpoint. represents and X% to rate trend an this this This basis. days dispositions quarter working the the minor, at to similar there this the a more basis, rounds decrease still to decrease compared of the

the Excluding lower second rate XX.X% tax current second down the the will on estimate from margin effective basis quarter the business adjusted is We in overall environment. tax Proservia projected quarter XXXX, lower EBITA adjusted to compared be to the earnings at XX impact Germany the prior on of of year. be reflects geographies the effect that run-off mix basis, an points for midpoint the which

restructuring repurchases, our usual, not weighted XX.X share estimate our charges guidance incorporate and As to shares does additional be we or average million.

the of report and hyperinflationary impact Our the balance our guidance include translation does we currency business not for will related noncash that also adjustment separately. Argentina sheet

now Jonas. will back to it turn I

Jonas Prising

our remains steadfast. operational Innovation resilience digital during commitment environment Digitization economic conditions. and History greater investing transformation and can Jack. shows more improvements that growth Thanks the faster in remains external Though favorable to uncertainty and lead in to our executing Diversification, dynamic, strategy

capture and The certain continued the in diversification offset of enabled automotive has in demand markets. Experis opportunities demand in solid softening European our demand our business transportation our in increased business services QX, and new global to saw help various regions U.S., IT footprint product to us saw Manpower and Healthcare offerings and in and verticals. In our

career Talent trends to at our well, quarter. In of on skills prior improved hiring Solutions, Management TAPFIN production. delivered technology business clients performed in specialist the MSP Manpower and continue transition In Right while the from business, intersection our our business focus

attract Manpower travels, guide out Academies, we and talent ability our for In like worldwide I program, services of move need. important to companies careers. those MyPath tight coach equipped upskill a labor opportunities thousands recruiters, very hundreds to our our saw this our well people part market. a where Through Agents very to of the of mentor, in creation of dedicated our Talent the and and our Japan, network recent dynamics in our my the market and client upskilling in play value is up their and value growing to are We of meet Experis

our opening Services global the Porto, global quarter, for proud standardize, serve our back a good center significant our service the milestone central Global technology make to progress cloud-based and the a and finance Portugal, the reached front our continue through PowerSuite, are and first to with platforms Europe deployment office. we of lead regional we Business finance our in center roadmap of strategy to and industry transform digitization, In centralize in of all to delivery. of component On

This serving finance Mexico service City in follows Latin our America. center successful mature shared

we been work right in our our high We years, and business valued XX who with by people, all has way know communities which committed to For ManpowerGroup the operate. us. clients, standards the doing for are these

approach. are As we AI people-first guided advances, by our

AI We AI-related for value while enabling our us that risks, a create Committee front us that clients. and innovate Ethical stay of established multi-functional helps approaches have pilot our in people and to new

teams XXth our each In March, World's now again line the recognized our time. to and our our thank we were culture to world day. I around open to ethical leadership standards, once like the candidates, strong Ethisphere, create Company value for was for like operator. and by ethical the who a as live clients our help Ethical Most would propel Q&A, named I'd

Operator

Instructions] Markets. our with Silber Jeff first Capital And [Operator question BMO from comes

Jeffrey Silber

was you in trends. it's on intra-quarter you April, about I wondering early if little quarter can be us great. current on a what's more us the color And bit I give in know going been would can anything but tell

John McGinnis

be about Jeff. This I'd Jack. happy to talk that. is Sure,

we've levels So aligned guide with France about are quarter the talked we've pretty I activity much in in April overall. see with as what pretty of line with larger in first quarter. in there, seen up the where in first far some markets, think we our ended And our that you much so in

say, and stable declines. in a lot lapping activity in basis, we've U.S., as the you at an the Manpower the our benefit prior Experis on as look prepared anniversary-ing And levels say, I'd about talked And U.S. you the remarks. But year I'd well. and results of see underlying

like were over many quarter, Northern the of markets Italy stable well. main as April, of think tricky saw in what that's I'd course there's step of as we from trends. the was of the bit say over impact, a trends. our first I saw the March in say, back timing Easter that of bit year-over-year, we well, is I'd equation, little And thing. out I'd markets if in but say, I an I'd a the Europe that what of say this in little say and think lot Easter you stable a I'd some So April, And a take because month of year the March and

we levels was fourth our down from first looked quarter. France That basis. of to quarter came the at step line knew And activity the going overall in with in in, course quarter an when on the We during the expectations.

the where we in basis I think were much full line we're a on pretty with quarter quarter overall. ending

little quarters I'd our markets. would we been a So look that's was which into expectation we're a pretty stable quarter, similar well. for U.K. largest few color the now. And as on activity the as more second a be maybe into say has one stable well. U.K., as levels seeing

Jeffrey Silber

if That's the All of I looks could right. step rates If helpful. to is back macro U.S., longer. you that It higher for those happen, Fed But probably look different in be and cuts. in does the really to seem do would at we think how geographies? If maybe your like businesses more closer the impact keep interest going question. ECB, a to that they making

Jonas Prising

Jeff. in cooling, Well, slightly central cooling coming the I out effects are the than the slowing of of is if course, economies. it's deciding to the cooling in onto are we are are rates, rates to acknowledging those where U.S. interest activity they're the to markets and that And is bear lower labor higher interest faster Europe, that hard think say, down, But they're banks economic here seeing play they cooling

make that happens, or start that would with idea interest again. the and will of business, of economy softer that when course, then, accelerating course, of to our lands the rates, demand. So starts to improving sure see effects be the dropping And

Operator

Trevor comes question with Blair. Romeo next Our William from

Trevor Romeo

the just was had Experis I one U.S. business. First on

confidence Just the coming a are tightness kind kind get demand Has back thinking supply What trying now far for in downturn to about quickly once overall the improves. labor as the has for of market? any seeing the market labor as or kind snap additional that slack talent. business kind client how of continued? of IT of you been Just that sense as and could there of

Jonas Prising

Thanks, close it's we're Trevor. of Jack not first we as as the not or just remains demand for as The less observed the and, Companies about up outlook pandemic tight as are seeing on companies continued tech see mentioned, is It but looks and improve. What immediately just we in the skills skills, boom. it's weakness it for clients going reasonable. are was off an sign. hiring more outlook of that weak, large. And tech stronger take at which clients large even IT enterprise to post economic is or still a enterprise U.S. pandemic. what feel But a those is overall and as was specialized course, we've tight encouraging and their looking from sequentially, market as still stabilization strong, continue but we uncertainty, it believe convenience enterprise, to cautious better the the and that being coming hiring to terms that demand as employers firms trends than in see

Trevor Romeo

That's competitors guess, does pricing? by levels level follow-up, it helpful. feel competitive of I of losing kind demand. are these Or competition for like gaining, to I your at some kind across try markets seeing key on rational? markets? still at maintaining you lower of the generally undercutting grab all guess, of just in Is of, the share then Jonas. you're some your And curious major environment Okay, share of a or some of generally, on

Jonas Prising

GP which Overall, being that I particular headwinds well margins, the despite I Europe holding And seeing we're North with America. rational. you market. up think our through see in staffing competition are and margin in come our this intense, can and also as think but we in remains would And overall gauge in the ourselves

are a and still tight but in that the be the that means historical Europe in a North So environment, America, rational talent And you continue still to competitive always and reason find cooling, markets not need. they're it's underlying that the no that perspective. stability easy to from it strong. There's for markets both part is labor but labor is doubt that

more be your may hiring. You judicious, more in surgical

terms of regular can see it many basis, on. still talent, talent that we also surveys are be that do they difficult finding may to people when sets how for bring more cautious want, But employees find are still and that want shortage employers you a you exactly they want You to looking skill that exact on them. in

So overall, in margins. and pricing it's remains competitive, think but rational, our I all staffing can of and across see stability we GP it reflected markets, and our that's overall

Operator

comes Mark Marcon with next question Baird. Our from

Mark Marcon

A one. really few different quick questions. One

Just GP, including total firm that come RPO, as a of percentage in, where did Jack?

John McGinnis

Mark, that for XX.X% at the first in quarter us. came in

quarter know that we've previous us it's in of staffing a I lower Mark, down seasonally, the quarter, talked it So a bit. GP for in you're seeing the quarter is just about What in where terms first came typically. dollars

actually very, a slightly perm perspective. sequentially So -- in dollars very actually improved

work XX.X%. that of a little of a ratio at in seeing mix higher you're bit So

Mark Marcon

questions. Okay. Great. just very a then And numbers couple of short

new Experis of IT and that out, promising a regards if stable business? staffing the IT out to in are to did line particularly you the And healthcare with things things projects, in And strip unless we the we were if Just how still sustainable look? trend. U.S.? be to expect strip of terms improving projects, would How those those much

John McGinnis

Thanks, Mark.

a see go-live U.S. were in yes, those quarter. would we attribute works some to in I think of Experis that the on did good out of did work during We deal business, I the IT. XXXX. deferred that first system hospital the call Healthcare

continue to in bit to see space say, in level quarter. I that of specific bit seeing spurt of the because maybe what lower when Jonas' So very I in I year. broader that but we quarters we I Experis point, sluggish bit we future did what think And as will a convenience course, activity catch-up, on tech, that, project are think if of related, And of we up will. But call wouldn't look in a last experienced a anticipate stable generally U.S. the first better. think it is you that considered point, did that levels, a trends we A your of would activity in holding terms business, here. out based at enterprise I still at demand, relatively was

big step about levels. And not a expect kind and we as step-up the in convenience look of I back will So We're forward, underlying to that we're the as stable talked year-over-year go trends of current year we second on seeing go biggest quarter. continuing help the and we forward, we continue. enterprise, at would we the that bit a quarter start as we anniversary of -- the and decline so the that and was anniversary year, will will last we into trend seeing second

stability. with at inflection I would point, line said, that's are kind Jonas So how this in of this seeing say what it no point at point, we but

Mark Marcon

out that are there bigger to particularly the of there? happened Manpower I that individuals. like then your various rates, are the One, to thinking Great. rates? predominantly of to ask higher regards are picture what's that of we When terms the with the in can thoughts business. states just people that are kind What you in questions. you clients couple wage these to a wage seeing and of through, kind place? And with Or about gig what's And all U.S., then, could What higher responding about just opportunities if available of the come how quality Jonas, are have productivity certain the level? regards think

Jonas Prising

and playing U.S. business in what reflected what the of the that's tough from a is Manpower that headwinds in of effect still manufacturing sector number the is really a seen in perspective, a the and we've demand PMI. out I clearly Mark, we're had So the time post-pandemic. an a pandemic seeing think now, from But years, for we frankly, see

was COVID was during it than the the world. the the in much So other any dislocation place across market U.S. pandemic of bigger

lots And of to that so workplaces, faced we're then workers scrambling left their were fill. employers with they and really back, shortages came

on category every post-pandemic they in the we're in cases, edge tech needed employer products workforce. temporary What a But market. still and they recover holding advantage that such hiring for are then of the now some boom. more leading the take that an really are their of industry, surgical of services. to hard staff. to as employers though the sector, In search find to of And and seeing a cooling we engaged at really labor is as in was They're struggling talent pandemic their much demand

industry the market broader limited to unusual market, believe, is we the strong this we can the staffing and saw and play out. reflect March. is in we numbers still that of degree, What's to think going more cooling between of end decline cycle But labor a the at temporary in length very on we the a labor still just rapid the

employers which, labor They environment, So of inflation. the navigating in an are having wages, high uncertain those the employers understand of cautious tight, are they terms still markets But still are now. wages, to pay additional power benefits are increases, above then economy, consumers. all, continues which, some may to the that consumption workers but also U.S. course, have fuel drive the real provides inflation, in wage in purchasing good to which turn, so

market. of an but that's levels really it's as during we've say number And all, with a of skilled would we playing moving how in the and of all increasing slow a the expect normally any higher years of anomaly a this a workforce, trend labor a think motion would is with overall out we towards post-pandemic skilled and not I higher productivity move general cooling I is cycle, of that think a So expectations seen always on technology over trend evolution workforce. then different. that But

Mark Marcon

think bit X terms matching it. in recruiting, like AI what's services, out been you've basically also a become, in little then more about that When more we've you of your placement just how anniversary talk years, X exploring efficient you now just And Great. perspective? initiatives. of your talked field can the a you've ChatGPT, but had in much not a to operations Can year the from terms -- about shared

Jonas Prising

certainly I'm of recruiting actually in AI, implement not our in what Because is And technology learning to the in as best efficiencies you transformation. candidate and very things or to an not we've their using as recruiters Talent to I'm you this but continue recruiting year as superior excited you as tools we do about. are to repetitive Solutions. for have a modern Mark, learned that and in that that believe been one leverage is much providing have need the is only as with salespeople that we've able also well of unless tasks, people that I we we're back-office and who implemented the a multiyear shared our as journey technology services expert cannot AI apply better, that Experis, well quite people infrastructure on And although digital I we a Manpower, can. in jobs infrastructure. have are modern And experiences they providing know, automation

are AI in the say effects actual in a environment. So early And we of substantial. themselves yet. the would impact read papers, think can I everything AI of to the we be days yet quite it's despite business manifest that

the the of course sector, make and is level technology not, services anecdote, from financial but of continuing of recruitment maybe counterintuitively skills, an which a significant massive to of maybe, investments. is AI As coming user highest

we, that and are instance give leveraging particular, we extremely placed, because one of the think So great platforms all only us platforms. across well will geographies, company or are our major opportunities, AI is we in industry global

have system. So other because applied all operating a particular AI once learnings geographies, those quickly geography, we can in same into we to we're transfer the

Operator

UBS. with Chan Josh from comes question next Our

Joshua Chan

in no charge is the the You while. mentioned that quarter, time I think first there's a restructuring in which

timing that that that a number in of we Or And time to for structure satisfied is with the suggest your read so quarters? you're organizational first related? should

John McGinnis

not happy I'd on to we little to charges, right actions permanent restructuring for in savings Yes, were and at we And feel about No, have give a the of this be as balance. that. We do Josh. those got have when color at pleased that, we And more 'XX. have seriously. we've very charges. think restructuring XXXX, talked they to charges following sustainable the stage, Thanks, we restructuring I taken And significant business part case certainly really a actions. we've like lot look

about downs seeing further reflect We're in on talk lot stability. heard I markets. our dramatic us we activity you've major not of think a as step any levels,

feel adjustments And going monitor think we these appropriate current I we'll forward. with like to so continue that we made that, And trends. have based on

we'll ensuring preserve I the we've balanced the at of take we this So for sales and upturn. the need action the continue significantly, very, markets that the we we think to to I we And look if going and do then, we very focused will environment feel right course, have very And to we are being changes on capabilities what will currently, do be that margin. But we've that. the made adjustments. in ready focused forward. We're way think appropriate on

Proservia did in think other Germany. item of I terms was And we what ring-fence the

As than in can terms And we quarter, it And better impact then with those that is actually margin fully that the quarter. completed. a GP with benefits in well, we business as line in going will into second as the on gave anticipated the said, we're charges. exits. be trend actually in a starting bit the that you I of our come expectations, estimating the lower we slightly can see runoff first you second actually as quarter, little that that go in And through lower to see

to about about. way of the we've restructuring one-off that the that's so And items some think talked and

Joshua Chan

in continuing the confidence some Experis, improving trends were your of I to on Perfect. perhaps. in to get some your terms That's encouraging, projects that I Jack. just of confidence QX depend And how in decline color better then U.S. to the that wanted recognizing does ask around get I just about much in rate wanted the U.S. guess there behind But

Jonas Prising

but appears bit. only tracking We've improve not be Talent well, Right is outplacement, The business market the in to TAPFIN Manpower. think all our of stabilizing, MSP same Management, we a And although our at level. with seen in Talent lower in across seen course, not And Overall, brands. for a actually Solutions stabilize of Experis, Solutions, RPO we've accelerating.

to So and from that's they our looking second quarter. positioned, that gives things should are, remain us an trends idea that we're guided in perspective, at if as we've the stable, industry, where the the way stay what and an

Operator

question comes from next with Barclays. Our Patnaik Manav

Princy Thomas

offering, wanted Princy you're on products you softening see I within to the This I your call -- regions offset a you gauge on that going verticals. verticals to just softening and want specific in? seeing mentioned and demand Manav. services diversification demand and help on and what for would that just in is have on continued certain get regions

John McGinnis

I comments, to bit a It the I'd elsewhere. weakness areas up of from some prepared remarks where you're some think got little like broke is, say question, some you've And broader the do and you I question Europe. your is, the we earlier seeing a sector but gist strength, in be helping in sluggish, your say very in Princy, to offset highlighted that's manufacturing continues what sounds of weakness. have Jonas' perspective, there ex I'd where automotive

And automotive has previously in been solid. that in France So Europe those We've about talked holding markets. well Italy and some in in in Germany. as up of

auto be take continues to you very, very sluggish. when aside, manufacturing say I'd But

The ongoing that very enterprise maybe of Enterprise last one half in inflection buying tech seen in we've in one. and we've I the terms of continues. big sluggish, really I'd point not other second think starting What a and seeing is lot is tech. quarter, say that really there. staffing financial I very about a talked big that's just sector call cautious into out services, a of was for cautious much to big the the So and first be strength of financial demand, continues in the one sector XXXX. year half just a finance. behavior And last the first more the

certain of we aerospace areas strength. color of in we're again, Healthcare that seen Construction in So on where some seeing particularly us see project-related for good that's And in first quarter, the strength, a mentioned earlier, been strong the first some actually have well. has as And where of been for little markets the some has in us, did activity terms the offset okay we France. U.S. to the as activity some I in quarter IT, in

Princy Thomas

and What related I demand And wanted know skills you to it. ask it's that innings. kind for follow-up. AI early are Got I a currently seeing roles? you mentioned of still

John McGinnis

of kind skills. you AI what was in that demand are think I seeing

Jonas Prising

Right. we an Then we're what I in the though, grand I most things, might looking addressed the the skill for also industry volumes the skills. technology is sector. demand of look services be, posting Interestingly, small. see previously skills, that AI increase which for think and what I that might But that ads scheme very when say one would in seeing we just found, that at orders sector that and the from the which for comes ads job one those we posting the most sets, financial see AI this is the are

rate, the small. which, still massive But that we're are seeing at perspective, although the coming increasing they're looking would course, from a an platforms is difficult But and from skills. fast skills find the of are context AI to in demand position these demand overall technology that overall fact within though running size it's primarily sector, I financial of is what is the services of for they the and

Operator

Tobey with question comes from Sommer Truist Our Securities. next

Tobey Sommer

to Maybe ask and it rebounds. in in initiatives, about about SG&A you we Again, the SG&A around be you impact percentages, on a at change pieces? I could different investment to billion? complexion of and think context percentage improvements able you in XXXX years would demand $XX recent demand achieve of wanted your out the back those the there. Any thinking revenue get several peak I'm when in X rebounds productivity when

John McGinnis

I'd for be to Yes. question. talk Thanks, that to that. happy Tobey,

efficiency to we would is expect see ratio. the in definitely, really our some So improvements good answer

the percentage But in where recent been efficiency, a GP the deleveraging looking one. out. most as play you seen is you're certainly whether at levels revenues. at When we've I'd So and SG&A you've look of say probably GP or of years, pre-pandemic relevant

Portugal. quarter the programs. the opened on it about opening first and, doing progressing in remarks, a that's through we come financial going These quite up office driving the talked volumes center, are and that perspective. productivity we things the bit already And shared going recruiter of global talked meaningful of a progress prepared a have cost in our more we in in the Porto, significant PowerSuite the up work on in we're based -- be But heels about type bit our with we our structure business when that service efficiencies to center structure significant from we're And a in point, cloud-enabled will in implementations our front return nicely forward. way to transformation are your

would those a significant we of to in SG&A return and when back percentage you levels, to point, ongoing really GP expect programs see add So those improvement start efficiency. as volumes you when previous together, kick a in your to when

those drive that drop And meaningful see to in well, about and you'll the ratios. as down in EBITA we've margin talked improvement that will that So past.

a a So bit there'll of be impact. double

see continue You'll see as you'll come as efficiencies the of be see that will through all roadmap but us we falloff through, of to of the investment spend programs these EBITA, programs, through EBITA the that improve one which improvement, our meaningful ratios then well. that will some And our margin key components help and as in the of those you'll continue. of come

Tobey Sommer

still more because into the bit use demand. a strategy, softening of years is clear team when or the of what management little capital you kind that you could coast a acquisitions. your are playbook? of couple Is was hoping areas select improving, and capital comment have deploy criteria we're may as the the gotten And on the historically, acquisitions? signs that to Okay. demand you in And I that form signals time you And at typically deployment

John McGinnis

and has say, for well acquisitions very careful. on has been right, line Yes, is And IT very question. have strategy us. have think out been changed. worked I our Tobey, resourcing the I we think the that's we great overall, side, main But made where you're I'd punch not

U.S., Experis performing As better in of did sector. XXXX, talked that about the the acquisition than we we performing so component think well. Jonas convenience about in very enterprise the the is

cash for acquisitions, our So very for conducive us well. has the seen an high as not continues that forward. And and be return excess current you've been via in current we the candidly. as us look us And continues right, to dividend to program, be share environment environment, what do you're meantime to area priority is in a the the repurchase

approach to should continue. you that So expect

are it And again, when we comes careful acquisitions. to very

a of and We improve forward. would type where say detailed at But that something environment currently. fit But items. do I'd would to different those about importantly, filters. I cultural are analysis. realistically be something think starts more we going look of is many very, we to very So that's Most the that as say kind

Operator

JPMorgan. question next from Our Steinerman comes with Andrew

Stephanie Yee

Yee stepping dynamic? will guess declining be rather in U.S. is the about for have U.S. this unusual. BLS the Stephanie Wanted been in in the what figures industry for the is X shape of do This given for I you ask, staffing help Andrew. and to years obviously, temporary so now, Manpower the recovery unusual which think the U.S.

Jonas Prising

U.S. we the XX consecutive of the our unprecedented. recession you in without Thanks, XX preceding of temp agree X declining or And say, months declines a a U.S. if the add growth, is worker of industry declining that's months growth in cooling economy Stephanie. frankly you in as Yes. No, months significantly that

work. saw use their month, workforces. increasing, They the flexibility by part-time as in are absorbing temporary last use by you holding and the staff, reducing BLS pandemic post-pandemic the So as are employers where really that to there the a time this and earlier, that hiring, distorted believe I lag today effect the the creating of numbers of of mentioned is we on is

So in improve their payrolls measure without more can way. they touching permanent about a significant the are to pulling flexibility that they just every

feel full-blown of Given recession, that we until return some cautious see likely very will good to that degree. the cautious it's assume remain And a about of not at use to that they are we there up the continue employers clear and that the we'll to is uncertainties a staff. believe they strength that point, economy, if the temporary

the also conversions difficult industries is across snapback. Right global way overall temporary levels, provide that workers, to especially course, sort rebound, a highly and in being now, economy of an of environment. the those into many question fantastic skill a is to course, going through the the everyone to on is the it's time, of very strong Stephanie, of that's really economic major highest conversion which is And of setting growth the what scenario today. we've because of for payrolls strength seen dependent of happen Because then The else. the growth, flexibility one uncertain what's and over the integrated employer various employers' economy for staff is world, U.S. in in estimate, and to tone become and any levels occur

the Manpower global enterprise pulling the to now. level a from traction, in us, sector along So clouds perspective we manpower for at right start delayed technology Talent very perspective, are a manufacturing perspective, perspective, postponed also think tech evolution and, and the activate and a side Experis and good the projects, Solutions really think see from the get when to starts a we then both But on that transformation particular, growth more lift we of the those we'll from services.

that now, see numbers. a really just BLS of bearing the is the It's it and right is in brunt this and broader feel U.S. But we anomalies of by And the in stabilization and slowing, can't industry the therefore, pandemic. the our distorted this by U.K., only sort downturn and flatten will to cyclical countries. you not we're, the pleased see out now more the eventually, several created essentially,

and to increased second big for then into of improved France will demand gives X the we our that and stabilize quarter, manifest estimate platform and numbers itself other our for a that operations, into hope Italy, Our recovery will brands. all also us

Operator

comes Moore with question next Jefferies. from Our Stephanie

Stephanie Benjamin Moore

digging the follow-up little question. further. bit be even into Actually, this to a that a Maybe might last good kind of

your I just guess a from with of here. the effectively, I'm you're bit having so also knowledge past So more customers, clearly little specific and kind be to pretty cycles of extensive trying conversations

go needs of, this side. the what opinion, admittedly, the to happen period to to positive to your from stabilization in broadly So inflection

is take need I'd kind see to unemployment this you're that of from rise a So different thoughts essentially, step first your be and what we this economy could love down? cycle do saying the prior? there. Or

Jonas Prising

hope rates tensions, geopolitical interest we other It's and of a in would then we that enough comes then is and gear in up rates. industry down our in a this with the Europe, a to associate at before seen now, And This to cool being but equally Very slack the already very we And interest followed course, good moving forward lowering subsequently is another in some broader would following happen. be not traditional and sign. different, normally on But part and the it's we've growth would the number see we interest signal improving to more that likely as feel terms Fed leading don't events. you point, cycle labor that a will be concerned. The even lower could kickstart start going and on time and business The to depending as Right cooldown will by the rates. since growth cycle. that is cooling generate of of significant, trigger, But good start now is economy industry to the could this areas, really of a market. ask, that lowers I create think from be far expect we to that such who maybe big Europe, economic the as that important. have edge cooling. think we'd Stephanie, our our we more Europe to frankly, of of that that significantly important. ECB a Europe. that see again evolution Cooling is the PMIs

direction, and do. come and lowering very to interest the inflation dropping. inflation in either don't to happen. that point can of needs that to trigger those see and cool way expect the levels rates or to happen and when would off it we are would think, the should higher expect we we it how really know in going but I U.S., around, Europe But get to we is So further expect it our or going everything they're turns is rates closely that, either before related when Right in of moving wrong the now,

Operator

comes next Sachs. Goldman with Our from George Tong question

Keen Fai Tong

mentioned in from stabilize, improvement and France were is to trends quarters. an past beginning You Italy which

what's you bit labor on stabilization? but elaborate You in what on the markets can to drive a these touched sector, you're helping and auto the seeing countries little in more that

Jonas Prising

is economic of at comes I that a economy across trends cooling over doing Yes. the markets France both continued and headwinds. in overall, Europe. the in a France and overall, stabilization step-downs look is are labor growth. trends, seen think seen Italy labor are the to the within that lot of that EU concurrent as in actually have and a since and Italian economic we've labor funds a cooled The that quarters have as Act that market, Italy has being lead the of But we industry a with well from that And we channeled cooling very economy our somewhat. part The of deployed the should Recovery an number with industry markets occurred of

Europe So well. U.K., to the let's other starting were Netherlands, we now have pre-pandemic, below that stabilization these in where are parts of are in we see remember as they markets in that in are well seen also U.S., the as the that still but that

point. countries then well. of Italy and as in business point has moving be progression to and where that expect our a been reached a France after really And sequentially we sideways it's happen So to that appears

Keen Fai Tong

initiatives your more headcount? rightsized to Can your a cost-cutting and productivity little achieve and it. helpful. into to wanted productivity then efforts. Got are That's bit where about journey dive I you improved in talk And further you

Jonas Prising

I think George, during deleveraging. as seen, course, we're environment like you've an of this,

So is moving down. productivity

resources same to very see time, mitigate advantage our adjusting, business extremely the it's point the we in to seeing make to the But well we're at being because the that effects our when rebound on of that sure to are America. to SG&A to and that enough through line. and careful North want Jack's headwinds that improvements retain happens, balanced in headcount, approach, and our And We the we're that flow at that. near-term the take productivity going Europe in our positioned of bottom point, particular in we're

bottom course, the And occurring quarter line can between quarter. and in our the second improvement, first you see terms of some of

we of As it quarter real second a improvement, countries. of Jack the quarter mentioned, start move as downturn. for in investments number the and a we've quarter, regaining made our course, come productivity when is technology the going to of the first the taxes resetting to well and cyclical as associates during weak improves. volumes to consultants leverage the the move lost of But due Experis into in starts our year, can we the up, is in We

Operator

America. And our from Bank last with Heather of question comes Balsky

Emily Marzo

This the is give the solid wondering believe there. any additional could I for if if I'm any pricing Emily into give had Balsky. pricing on additional you could Staffing environment. But Heather color you I'm color out Marzo you've wondering seen. you called

John McGinnis

additional of to I say, would really Yes. there a give. color isn't whole lot

I It's pricing think headline holding been the really has is been stable. up.

story volumes questions the impact of on at an remains really And I think much was Despite think being same. lower I the of been levels, one hasn't the that previous lines. really there pricing. asking along same

that down that really the we And an really market think I underlying is our quite effect. staffing On remains of margin is come think the takeaway. mix having basis, strong, is just although pricing that's the year-over-year, businesses has and rational. that

Operator

There are Please closing proceed no further remarks. any questions. with

Jonas Prising

thanks Excellent. speaking much quarter very for Thank with with look our very we July in soon. to you much, call. to and Until we look forward and again again you then, call, forward our attending speaking for second earnings earnings QX you

Operator

your does program, have may day. the conclude for now you great you and Thank a Everyone, participation. This disconnect.

ManpowerGroup (MAN) 18 Apr 242024 Q1 Earnings call transcript