Coronavirus outbreak could affect shipments, JB Hi-Fi boss warns

JB Hi-Fi chief Richard Murray says it is too early to tell if China’s coronavirus outbreak will interrupt shipments of TVs, hardware and other consumer electronics to Australia.

But Mr Murray has warned there may be a limited supply of electronics parts as the outbreak hits the manufacturing sector in China.

His comments came as the electronics retailer yesterday boosted its interim dividend after revenue and net profit climbed in the six months to December. JB Hi-Fi shares surged on the revelations, up 11.5 per cent, or $4.61, to $44.71.

Mr Murray said the retail heavyweight sourced a significant proportion of its consumer electronics from China. Last week, furniture retailing chain Nick Scali said the coronavirus outbreak would delay shipments from China.

Mr Murray said the impact on consumer electronics supplies was unknown as yet.

“Components, that’s where I think the challenge is going to be as factories reopen,” he said. “I think most reasonably-sized manufacturers have a reasonable stockpile of components. I would say as a larger client, hopefully we can ensure that we maintain our stock levels in the market.’’

JB Hi-Fi reported a firsthalf net profit of $170.6 million — up 6.6 per cent from the same period a year earlier.

Total sales increased almost 4 per cent, to $4 billion. The company declared an interim dividend of 99c a share.

It also announced yesterday that Greg Richards would retire as chair and as a director at the end of June.

Sales at the group’s main JB Hi-Fi Australia unit rose 5 per cent the past half.