Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  NASDAQ OMX COPENHAGEN  >  Santa Fe Group A/S    SFG   DK0010006329

News SummaryMost relevantAll newsSector newsTweets

East Asiat. Comp. : Company announcement No. 1/2010 - Venezuela introduces multi-tiered exchange rate regime

share with twitter share with LinkedIn share with facebook
share via e-mail
01/11/2010 | 09:45am CET

In a television speech Friday night President Hugo Chavez announced that,
Venezuela has decided to devalue its currency and to introduce a multi-tiered
exchange rate regime. The details of the legislation implementing the decision
will be published Monday Venezuelan time.

A more detailed quantification of the accounting impact of the devaluation for
EAC in 2009 will be addressed as soon as adequate clarity can be obtained
following the official devaluation decree. However, as a prioritized industry,
EAC expects that EAC Foods will continue to receive USD for its import
requirements and expansion programmes at a preferential rate.

It is expected that the official exchange rate of the bolivar (VEF) to the USD,
which has remained at 2.15 VEF since March 2005 will be fixed at 2.6 VEF, for
the importation of food, pharmaceuticals and other essential goods. For all
other items the USD exchange rate will be fixed at 4.3 VEF. The existence of a
third floating rate - until now known as the parallel rate - has been officially
acknowledged and will be managed through central bank intervention to avoid
excessive speculation.

In his announcement President Chavez did not mention anything regarding
treatment of foreign debt, dividend and royalty. Consequently, the official
devaluation decree will have to be awaited before quantification of the
accounting impact for 2009 and 2010 can be determined.
Accounting adjustment due to Venezuela now considered a hyperinflation economy

Irrespective of the devaluation, but due to the recent years' increased
inflation in Venezuela the country should for accounting purposes be considered
a hyperinflationary economy as of 31 December 2009. Under the International
Financial Reporting Standards (IFRS) this requires the application of IAS 29,
"Reporting in hyperinflationary economies" for 2009 and subsequent years. The
application of the standard affects the accounting presentation, but does not
affect the operation or the cash flow.

Essentially, IAS 29 requires the financial reporting for EAC Foods to be
restated to reflect the current purchasing power at the end of the reporting
period, and as a result all non-monetary assets such as fixed assets and
inventories etc. should be restated to the current purchasing power as at 31
December 2009 using a general price index from the date when they were first
recognised in the accounts. The income statement will be restated to reflect
changes in the general price index from the date of the transaction to the
reporting date 31 December 2009.

Outlook for 2009 and 2010

The outlook for 2009 will be re-assessed based on the information regarding the
devaluation expected from the Venezuelan Government during the next couple of
days, adjusted for hyperinflation and announced to the marked as soon as
adequate clarity can be obtained.

The expected outlook for 2010 will as usual be addressed in connection with the
announcement of the annual result for 2009, scheduled for 25 February 2010.

Yours sincerely,

The East Asiatic Company Ltd. A/S
(A/S Det Østasiatiske Kompagni)

For additional information, please contact:

President & CEO Niels Henrik Jensen
 +45 3525 4300
 [email protected]

Group CFO Michael Østerlund Madsen
 +45 3525 4300
[email protected]



share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on SANTA FE GROUP A/S
11/17 SANTA FE A/S : Relocation in sport. The Presence Of Expatriate Footballers & Wha..
11/17 SANTA FE A/S : Why You Should Consider Moving To Australia To Study
11/17 SANTA FE A/S : Report of transactions pursuant to Article 17 of EU Regulation No..
11/16 SANTA FE A/S : SFG Delårsrapport 3. kvartal 2017 Selskabsmeddelelse nr. 10/2017
11/16 SANTA FE A/S : SFG Interim Report Q3 2017 — Company announcement No. 10/20..
11/16 SANTA FE A/S : Group sells the Records Management activities in China Company An..
11/15 SANTA FE A/S : Expat Guide To Moving To Milan
11/15 SANTA FE A/S : Be sure to join our 'Fairy Godmother Project' in Johanesburg on 1..
11/15 SANTA FE A/S : Relocation named Relocation Management Company of the Year at EME..
11/14 SANTA FE A/S : The Differences Between Work & Travel Visas Around The World
More news
Financials ( DKK)
Sales 2017 2 319 M
EBIT 2017 37,2 M
Net income 2017 -7,44 M
Debt 2017 743 M
Yield 2017 -
P/E ratio 2017 -
P/E ratio 2018 17,26
EV / Sales 2017 0,57x
EV / Sales 2018 0,15x
Capitalization 570 M
Duration : Period :
Santa Fe Group A/S Technical Analysis Chart | SFG | DK0010006329 | 4-Traders
Technical analysis trends SANTA FE GROUP A/S
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 1
Average target price 70,0  DKK
Spread / Average Target 52%
EPS Revisions
Martin Thaysen President, CEO & Head-Investor Relations
Henning Kruse Petersen Chairman
Christian Møller Laursen Group Chief Financial Officer
Preben Sunke Deputy Chairman
Michael Hauge Sørensen Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
ADECCO GROUP11.03%12 755
RANDSTAD-3.66%10 724