Kyriba’s Quarterly Currency Impact Report: FX Volatility Spikes to $29.14 Billion in Earnings Impacts

CFOs Struggle with Currency Risk Amid $6B Increase in Total FX Impacts from Previous Quarter

European Companies Lead Suffering as Headwinds Jump 349%

Kyriba’s latest Currency Impact Report (CIR) shows multinational companies experienced over $29bn in total impacts to earnings from currency volatility in the second quarter of this year. The CIR studies the quarterly impacts of foreign exchange (FX) exposures among 1,700 multinational companies based in North America and Europe with at least 15 percent of overseas revenue. The combined pool of corporations reported $20.15 billion in FX-related headwinds and $8.99 billion in tailwinds in the second quarter of 2023, with North American companies reporting $14.43 billion in headwinds, and European companies reported $5.72 billion in headwinds.

“Currency impacts are a global phenomenon and no geographic region is immune, demonstrated by the massive increase in European headwinds from last quarter,” said Melissa Di Donato, Chair and CEO at Kyriba. “This data is a clear signal to global organizations with significant overseas exposure that currency volatility continues to erode value. Quantifying the impacts of FX on their businesses is critical for CEOs and CFOs to execute data-driven risk management programs.”

Highlights from the November 2023 Kyriba Currency Impact Report include:

• Publicly traded North American companies reported $14.43 billion in headwinds.
  • Down 32% from last quarter.
• Publicly traded North American companies reported $7.52 billion in tailwinds.
  • Up $7.46M from last quarter.
• The average earnings per share (EPS) impact reported by publicly traded North American companies in Q2 2023 was $0.05.
  • Down $0.01 from last quarter.
• Publicly traded North American companies indicated the Canadian dollar (CAD) as the most impactful currency, with 44.4% of companies referencing it as impacting revenues; the euro (EUR) was second at 22.2%, and the Chinese yuan (CNY) was third with 16.7% of North American companies identifying it as impactful.
• The euro was cited as one of the most impactful currencies by publicly traded European companies on earnings calls.
• The top five industries that experienced the greatest impact from currencies in North America were (in ranked order): machinery, trading & distribution, auto components, electronic equipment, instruments & components, healthcare equipment & supplies, and construction & engineering.

“CFOs have a long way to go to cost effectively manage FX risk to protect balance sheets, earnings and cash flow from currency swings,” shared Di Donato. “Staying vigilant for the remainder of the year and into next year should be a top priority to mitigate the currency effects from geo-political events, economic volatility and financial market concerns.”

To learn more about FX impacts to specific industries and which currencies were most impactful to multinationals, download the November 2023 Kyriba Currency Impact Report here.

About Kyriba Corp.

Kyriba empowers CFOs, Treasurers and IT leaders to transform liquidity performance and drive value creation through data-driven financial decisions. Kyriba is a secure, scalable SaaS platform that delivers intelligence and financial automation enabling thousands of multinational corporations and banks to maximize growth, improve financial resilience and increase operational efficiency. For more than 2,500 clients worldwide, including 25% of Fortune 500 and Euro Stoxx 50 companies, Kyriba manages more than 2.5 billion bank transactions and $15 Trillion in payments annually.

Kyriba is headquartered in San Diego, with offices globally. For more information, visit www.kyriba.com.

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