Sodexo will use the SICAD II exchange rate to convert Venezuelan bolivars in its consolidated financial statements
June 12, 2014
On March 24, 2014, the Venezuelan government created a new currency exchange system called SICAD II.
After a period of observation during the last two months, Sodexo completed today its first transaction on this market at a rate of 52.10 bolivars = 1 USD (or 70.72 bolivars = 1 euro).
Sodexo intends to continue to translate the financial statements of its Venezuelan subsidiaries at the rate obtained in the most recent transactions, consistent with the conversion method used by the Group since 2010.
Although the impact of using this rate on the financial information for the first half of Fiscal 2014 would have been to decrease revenues and operating profit by 32 million euro and 17 million euro respectively, the impact on Group net income would have been limited to a decrease of 2 million euro.
Using a rate of 70.72 bolivars to 1 euro, the full-year impacts are expected to be around double the above amounts and should not have any significant effect on the Group’s financial situation.