Monday, February 11 10:37:16
Dublin-based paper and packaging giant, Smurfit Kappa Group (SKG), this morning said that the surprise devaluation of the Venezuelan Bolivar currency will cut the value of the Irish firm's net assets in the country by E142m.
The Venezuelan Government announced the devaluation of its currency, the Bolivar Fuerte (VEF), on 8 February, 2013.
The official exchange rate was changed from VEF 4.3 per U.S. dollar to VEF 6.3 per U.S. dollar.
"As a result of the devaluation the Group will record a reduction in net assets of approximately E142 million in relation to these operations and a reduction in the euro value of the Group's cash balances by approximately E29 million in Quarter 1, 2013," SKG said.
"The impact of the devaluation on the Group's 2013 pre-exceptional EBITDA is not expected to be material," the statement added.