ManpowerGroup(MAN) - 2024 Q4 - Annual Report

Revenue Sources - In 2024, 90% of revenues in the Americas segment were derived from staffing/interim services, with 4% from permanent recruitment services, 2% from outcome-based solutions and consulting, and 4% from other services[32]. - In Southern Europe, 91% of revenues in France were from staffing/interim services, while in Italy, this figure was 93%[34][35]. - In Northern Europe, 85% of revenues were generated from staffing/interim services, with 4% from permanent recruitment services and 8% from outcome-based solutions and consulting[38]. - In the APME region, 81% of revenues came from staffing/interim services, while 15% were from outcome-based solutions and consulting[39]. - Approximately 60% of the company's revenues in 2024 came from large national and multinational clients[42]. - In 2024, approximately 85% of the company's revenues were generated outside of the United States, primarily in Europe[114]. Company Operations - As of December 31, 2024, the Americas segment had 416 branch and 137 franchise offices, with 65% of the segment's revenue coming from the United States[30]. - The company operates through a network of 2,100 offices in approximately 75 countries and territories, providing workforce solutions to millions of people annually[12]. - The company has been in business since 1948 and has been listed on the New York Stock Exchange since 1967[18]. - The company leverages its integrated HR tech stack, PowerSuite, to deliver workforce solutions across multiple countries at scale[16]. - The company opened a Global Business Services center in Porto, Portugal, as part of its strategy to standardize and centralize finance service delivery[105]. - The company is focused on deploying PowerSuite, a global cloud-based platform, to enhance service delivery and financial administration[105]. Financial Performance - Revenues from services decreased by 5.6% in 2024 compared to 2023, with a constant currency decrease of 3.4% and an organic constant currency decrease of 3.0%[167]. - The gross profit margin decreased by 50 basis points to 17.3% in 2024, primarily due to declines in the permanent recruitment business and lower staffing/interim margins[172]. - Operating profit increased by 19.6% in 2024, with an operating profit margin of 1.7%, attributed to reduced selling and administrative expenses[173]. - Net earnings rose to $145.1 million in 2024, a 63.5% increase compared to$ 88.8 million in 2023, resulting in diluted net earnings per share of $3.01[176]. - The effective tax rate for 2024 was 43.5%, lower than 56.9% in 2023, primarily due to a higher level of pre-tax earnings[181]. - Cash provided by operating activities was$ 309.2 million in 2024, a decrease from $348.2 million in 2023[204]. Employee Engagement and Development - In 2024, the company achieved an 80% response rate in a global employee survey with over 22,000 staff participating, indicating strong employee engagement[64]. - The company has trained over 4,500 developers through its Experis Academy, bridging skills gaps for more than 170 tech companies across approximately 20 countries[56]. - The company is focused on enhancing its culture and diversity, with specific programs aimed at supporting gender diversity at leadership levels and fostering an inclusive environment[60]. - The company has invested in leadership development programs, with 110 employees completing the Future Leaders Program in 2024, totaling 955 since its inception[61]. Risks and Challenges - The company faces risks from volatile economic conditions, particularly in Europe, which could adversely affect demand for its staffing services[78]. - The employment services industry is highly competitive, with significant pressure on pricing, which could adversely affect the company's market share and profitability[83]. - The company faces risks related to cybersecurity, including potential liabilities and reputational damage from data breaches, which could lead to significant financial losses[84]. - Compliance with evolving data privacy regulations, such as GDPR and CPRA, could impose substantial operational burdens and financial penalties, potentially up to 4% of global revenue for GDPR violations[88]. - The company faces challenges in attracting and retaining qualified personnel due to a tight labor market and increasing demands for better employment conditions[97]. - The company faces potential litigation and legal claims that could materially adversely affect its financial condition and results of operations[133]. Debt and Capitalization - As of December 31, 2024, the company had total debt of$ 952.8 million, with $928.4 million related to Euro-denominated notes[114][118]. - The company’s ability to service its debt is dependent on the performance of its subsidiaries and their ability to distribute cash[121]. - The company had a net Debt-to-EBITDA ratio of 1.97 to 1, well below the maximum allowable ratio of 3.5 to 1[225]. - Total capitalization as of December 31, 2024, was$ 3,079.7 million, with debt comprising 31% of total capitalization[212]. Market Conditions - The company reported that 64% of its revenue comes from European markets, which are particularly susceptible to geopolitical events and economic conditions[77]. - The company expects continued challenges in the business environment, impacting operations in future periods[167]. - The company faces risks related to foreign currency fluctuations, which could adversely affect its reported financial results[113]. Stock and Dividends - The company's common stock price fluctuated significantly in 2024, ranging from a high of $79.12 to a low of$ 56.82[126]. - The company authorized the repurchase of 5.0 million shares of common stock in August 2023, with 2.6 million shares remaining authorized for repurchase as of December 31, 2024[156]. - The company expects to continue paying semi-annual dividends, subject to review and change at the discretion of the Board of Directors[155]. - Total cash dividends declared were $3.08 per share in 2024, resulting in total payments of$ 145.8 million[209].