Smurfit Kappa endures €142m cut in assets
Corrugated giant Smurfit Kappa has endured a €142 million reduction in assets following the devaluation of Venezuela’s currency
The Venezuelan government announced the devaluation of its currency, the bolivar fuerte (VEF), on 8 February. The official exchange rate was changed from VEF 4.3 per US dollar to VEF 6.3 per US dollar.
Smurfit Kappa said that as a result of the devaluation it will record a reduction in net assets of approximately €142 million and a reduction in the euro value of the Group’s cash balances by approximately €29 million in the first quarter of 2013.
In a statement published this morning (12 February), the firm indicated that the impact on 2013 earnings before interest, taxes, depreciation, and amortisation (Ebitda) is not material.
The corrugated and paper company has recently reported an 11% increase in 2012 pre-tax profits to €331 million.
