Yesterday, Victorian Premier Daniel Andrews announced a range of further restrictions that will soon be imposed to curb the spread of COVID-19.
As a result, a number of ASX shares have released announcements today regarding the impact of these new measures. Here’s what Victoria’s COVID-19 clamp-down means for these 3 ASX shares:
JB Hi-Fi Limited (ASX: JBH)
In a trading update this morning, the electronics retailer revealed that 46 JB Hi-Fi stores and 21 The Good Guys stores located within metropolitan Melbourne will be closed from midnight Wednesday, 5 August for a minimum period of six weeks. For context, at the end of 1H20, the retailer said it had 199 JB Hi-Fi stores in Australia and 105 The Good Guys stores.
While in-store operations will be suspended, JB Hi-Fi’s online operations will continue to trade, with customers able to receive their orders via home delivery and contactless click and collect.
In other positive news, JB Hi-Fi’s warehouses and Melbourne store network will be operational to fulfil online and commercial orders.
Inghams Group Ltd (ASX: ING)
The poultry company revealed that lockdown measures for meat processing plants in Victoria, set to take effect on midnight Friday, 7 August, will impact operations at Ingham’s two meat processing facilities.
The restrictions will apply a 33% reduction in the workforce at these plants from peak production staffing levels at any one time, as well as some additional safety initiatives. Ingham’s noted it is awaiting formal directives from the Victorian government to provide further certainty on the restrictions.
However, the company assured investors the restrictions do not apply to other assets and facilities in its integrated supply chain, such as hatcheries, farms, feed mill and logistics operations. Meanwhile, Ingham’s Thomastown further processing plant reopened yesterday after a two-week shutdown due to a COVID outbreak.
Ingham’s is set to report its annual FY20 results on Friday, 21 August and will provide a further update on the Victorian situation at that time.
Blackmores Limited (ASX: BKL)
Unlike JB Hi-Fi and Ingham’s, Blackmores’ update today revealed that its operations will not be impacted by the new restrictions.
As the company’s manufacturing facility at Braeside, Victoria produces pharmaceutical products, it will continue to operate. And since Blackmores’ packing, warehousing and distribution operations are located in Sydney, these facilities will not be impacted by the new measures in Victoria.
Blackmores said it will share more information at its full-year results announcement on 25 August 2020.
At the time of writing, the Blackmores share price is up 2%, in line with the performance of the S&P/ASX 200 (INDEXASX: XJO), while Ingham’s is slightly outperforming with a 2.8% rise. JB Hi-Fi shares aren’t faring so well, with shares edging 0.3% lower in early afternoon trade.
These weren’t the only companies that provided COVID-19 trading updates today. This morning, Wesfarmers Ltd (ASX: WES) revealed how its operations will be impacted by the new restrictions, which Rask Media’s Jaz Harrison covered here.
