Packaging giant Smurfit Kappa has suffered a €142 million cut in assets following the devaluation of Venezuela’s currency.

The Venezuelan government announced the devaluation of its currency, the bolivar fuerte (VEF), on February 8th.

The official exchange rate was changed from VEF 4.3 to the US dollar to VEF 6.3 per dollar.

As a result of the devaluation, Smurfit 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, the company indicated that the impact on 2013 earnings before interest, taxes, depreciation, and amortisation (Ebitda) was not material.