Effects of virus spreading
More firms scrap guidance in wake of pandemic
ARISTOCRAT Leisure, Kathmandu, Ramsay Health, Mirvac and others yesterday scrapped earnings guidance while troubled theme park operator Ardent Leisure will close its US venues as the COVID-19 pandemic clouds the global economic outlook.
A swag of firms have also announced a scaling back of operations, with Collins Foods confirming it will be closing its eat-in services at its Australian KFC restaurants and focusing on takeaway, drive-through, and delivery. Dreamworld owner Ardent announced it would temporarily close its Main Event centres in the US after that country introduced stricter guidelines to stop the spread of the virus.
Scentre Group, however, has stressed that its Westfield shopping centres are an “essential activity” as described by Prime Minister Scott Morrison, and will remain open. “We are also working with our retail partners as they manage their business through this volatile period,” Scentre said.
Real estate advertising group REA said while the housing market had been growing, it had withdrawn the financial outlook it offered in February.
REA will allow customers to list sales again for free, and has postponed price increases for residential listings.
Private hospital operator Ramsay Health Care was another to scrap its outlook. Group managing director Craig Mcnally said while it was too early to determine the virus impact in Australia, he expected an increase in private patients. Some hospitals were fast-tracking elective surgery to minimise future disruption, he said.
Property developer Mirvac also ditched its earnings expectations. The buyer and builder of office, industrial and residential properties said the uncertainty made it appropriate to withdraw full year guidance.
Gambling machine manufacturer Aristocrat Leisure has had some of its casino customers temporarily close. It scrapped guidance as customers become more cautious about spending.
Adventure retailer
Kathmandu says the coronavirus will deliver a second-half earnings blow but maintains the outbreak shouldn’t limit product availability.
The Nz-based owner of Rip Curl and Oboz yesterday said it was unable to provide fullyear guidance as it prepares its first-half results for March 30 and foot traffic plunges amid accelerating quarantine and social isolation protocols.
Meanwhile, Bubs Australia has ramped up production to meet a spike in demand from parents anxious to secure supplies of infant milk formula.