How exchange rates affect company margins: what importers and exporters should know

Exchange rates can have a direct impact on company margins, especially when a business imports goods, exports products or settles services with international partners. Even a small change in EUR/PLN, USD/PLN or GBP/PLN may affect the real purchase cost, revenue value or profitability of the entire transaction.

For an importer, an increase in the foreign currency exchange rate may mean a higher cost of goods, materials or services. For an exporter, exchange rate movements may affect the value of revenue after conversion into PLN. In both cases, the exchange rate is not only a market indicator – it becomes part of pricing, margin calculation, cash flow and financial security.

Key takeaways

• Exchange rates can affect purchase costs, revenue value, margins and company cash flow.
• Importers are usually exposed to higher costs when the foreign currency they need to buy becomes more expensive.
• Exporters may gain or lose depending on the currency in which they receive revenue and the currency in which they incur costs.
• In foreign currency settlements, the exchange rate is important — but so are the spread, timing of exchange and payment date.
• Margin should be calculated not only at the offer stage, but also after the actual settlement of the transaction.
• For future commercial transactions, businesses may consider agreeing an exchange rate in advance to plan costs, revenue and margin more effectively.

Why do exchange rates matter for company margins?

Margin shows how much a company keeps after the costs related to selling a product or service are taken into account. If some of those costs or revenues are linked to a foreign currency, the exchange rate may change the final result of the transaction.

In practice, the issue appears when the exchange rate used in the initial calculation differs from the rate at which the company actually settles the payment.

Example: an importer calculates the selling price of goods using an EUR/PLN rate of 4.30. Before the company pays the supplier, the rate rises to 4.40. For a larger invoice, the difference may be significant enough to reduce the expected margin or change the profitability of the sale.

A similar situation may affect exporters. A company sells products abroad and receives payment in EUR. If it used a higher rate in the calculation, but the rate is lower on the day the currency is exchanged, the revenue after conversion into PLN may be lower than expected.

That is why the exchange rate should be treated as a real part of financial planning, not only as information checked on the payment date.

How do exchange rates affect importers?

Importers buy goods, materials, components or services from abroad and often need to pay for them in a foreign currency, such as EUR, USD or GBP. If most of their sales and operating costs are in PLN, exchange rate movements may directly affect their margin.

For importers, the key factors include:

• the exchange rate at the time of placing the order,
• the rate used in the selling price calculation,
• the rate on the day the currency is actually purchased,
• the payment date of the foreign invoice,
• the spread and cost of currency exchange,
• the possibility of passing higher costs on to the customer,
• the time between ordering the goods and selling them.

The greatest risk appears when the importer sets the selling price in advance but pays the supplier only after several weeks or months. During that time, the exchange rate may change.

Importer example

A company imports goods from a Germany supplier and receives an invoice for 100,000 EUR. In its sales calculation, it used an exchange rate of 4.30 PLN, so the planned purchase cost was 430,000 PLN.

If the rate on the payment date is 4.40 PLN, the purchase cost rises to 440,000 PLN. The difference is 10,000 PLN. If the company did not include such a change in the selling price, the additional cost reduces its margin.

For larger or recurring transactions, such differences may have a significant impact on business profitability.

How do exchange rates affect exporters?

Exporters sell goods or services abroad and often receive payment in a foreign currency. At first glance, a stronger foreign currency may seem beneficial for an exporter because the company receives more after conversion into PLN. However, the situation is not always that simple.

What matters is the currency in which the company incurs costs, how it prices its products and when it actually exchanges the currency it receives.

For exporters, the key factors include:

• the exchange rate used when setting the price for the customer,
• the rate on the day the payment is received,
• the rate on the day the currency is exchanged into PLN,
• production or purchase costs incurred in PLN,
• the payment term agreed with the counterparty,
• the risk of delayed payment,
• the impact of the rate on margin after conversion.

If an exporter calculates a contract using a specific rate and receives the payment later, the rate on the day of exchange may change the actual financial result of the transaction.

Exporter example

A company exports products and issues an invoice for 80,000 EUR. In its calculation, it used an exchange rate of 4.35 PLN, so the expected revenue after conversion was 348,000 PLN.

If the rate on the day of exchange is 4.25 PLN, the company receives 340,000 PLN after conversion. The difference is 8,000 PLN. If production costs were incurred in PLN, the lower exchange rate may reduce the expected margin.

That is why exporters should monitor not only the invoice value in foreign currency, but also how much the company will actually receive after converting the funds into PLN.

Exchange rates and margin: where does the risk usually appear?

Exchange rate risk is not always visible immediately. It often appears between several stages of the transaction: offer, order, invoice, payment and currency exchange.

The most common situations in which the exchange rate may affect margin include:

• a long time between the offer and signing the agreement,
• long invoice payment terms,
• settlement with a supplier in a foreign currency,
• receiving payment from an international customer after several weeks,
• no update of the calculation when the exchange rate changes,
• setting the selling price in PLN while costs are incurred in EUR or USD,
• setting the price in a foreign currency while most costs are incurred in PLN,
• recurring transactions where small exchange rate differences build up over time.

The higher the transaction value and the longer the time to settlement, the more important exchange rate control becomes.

Not only the exchange rate: spread and timing also matter

When analysing how exchange rates affect margin, a business should consider not only the exchange rate itself, but also the spread and the timing of currency exchange.

The spread is the difference between the buy and sell rate of a currency. For a company that regularly buys or sells currencies, the spread may be a real transaction cost. Even if there is no separate commission, the cost may be included in the rate itself.

The timing of exchange is also important. A company may know the amount of a future payment, but if it exchanges the currency only on the settlement day, it will depend on the rate available at that specific moment.

It is worth analysing:

• the rate used in the calculation,
• the rate available on the day of exchange,
• the spread,
• the transaction cost,
• the settlement date,
• the impact of the rate on margin,
• the possibility of planning the exchange earlier.

Find out more in International payments in business: how to reduce costs and exchange rate risk.

How to calculate the impact of exchange rates on margin

To check how the exchange rate affects margin, a company should compare the rate used in the calculation with the rate actually applied at settlement. The difference between them shows how the cost or revenue changed after conversion into PLN.

In simplified terms, the company can look at it this way:

Example: a company used a rate of 4.30 in the calculation for a 100,000 EUR payment. In reality, it bought the currency at 4.38. The difference is 0.08 PLN per euro, which means 8,000 PLN of additional cost. If the original margin was 25,000 PLN, it may fall to 17,000 PLN after the rate change.

This simple calculation helps quickly assess whether the transaction is still profitable at the expected level.

What should importers regularly analyse?

Importers should pay close attention to how exchange rates affect purchase costs. This applies both to single larger invoices and recurring deliveries.

It is worth analysing:

• the rate used when pricing the product,
• the rate on the order date,
• the rate on the supplier payment date,
• the invoice payment term,
• the possibility of changing the selling price,
• the margin after the actual currency purchase,
• the impact of the rate on customer prices,
• the repeatability of transactions in a given currency.

Importers should also define the exchange rate level at which the margin starts to fall significantly. This helps them react earlier instead of making decisions only on the payment date.

What should exporters regularly analyse?

Exporters should check how the exchange rate affects the value of revenue after conversion into PLN. This is particularly important when production, salary, warehousing or logistics costs are incurred in Polish zloty.

It is worth analysing:

• the rate used in the offer for the customer,
• the invoice currency,
• the payment term,
• the rate on the day the funds are received,
• the rate on the day the currency is exchanged,
• the margin after conversion,
• payment delays,
• differences between planned and actual revenue in PLN.

Exporters should also remember that a favourable rate on the invoice date does not guarantee the same rate on the payment date.

How to reduce the impact of exchange rates on margin

It is not possible to predict all exchange rate movements, but businesses can prepare better for their impact. The key is to include the exchange rate in the transaction calculation from the beginning, not only on the settlement date.

Companies can reduce the impact of exchange rates on margin by:

• monitoring exchange rates regularly,
• updating price calculations,
• including an exchange rate buffer in the margin,
• analysing the spread and the real cost of currency exchange,
• planning the timing of buying or selling currency,
• setting internal decision levels,
• comparing planned and actual margin,
• considering agreeing an exchange rate in advance for future commercial transactions.

It is also worth analysing the impact of exchange rates not only on a single invoice, but on a whole series of transactions. With regular import or export, even small differences may affect the company’s monthly or quarterly result.

How does AFORTI.BIZ support companies in managing exchange rate risk?

AFORTI.BIZ is a financial platform for businesses that supports entrepreneurs in day-to-day foreign currency settlements, financing and business cost management.

In the currency area, companies can use, among others, currency exchange and Term.

Currency exchange can support current settlements of importers and exporters who buy or sell currencies for business purposes.

Term may be useful for future commercial transactions when the company knows the amount and settlement date, but wants to reduce the impact of unfavourable exchange rate movements on margin, budget or liquidity. With Term, a company can reserve an exchange rate up to 12 months in advance for a future commercial transaction settlement.

This can help businesses plan purchase costs, revenue value and the profitability of foreign currency transactions more effectively.

Frequently asked questions about exchange rates and company margins

How do exchange rates affect an importer’s margin?

For an importer, an increase in the foreign currency exchange rate may increase the cost of goods, materials or services. If the company cannot raise its selling price, the higher purchase cost may reduce its margin.

How do exchange rates affect an exporter’s margin?

For an exporter, the exchange rate affects the value of revenue after conversion into PLN. If the exporter receives payment in a foreign currency, a lower exchange rate may reduce the value of the inflow in Polish zloty and lower the expected margin.

Can a small exchange rate change matter for a business?

Yes, especially with larger amounts or recurring transactions. A difference of just a few groszy in the exchange rate may translate into thousands of zloty in additional cost, lower revenue or reduced margin.

What is more important: the exchange rate or the spread?

Both are important. The exchange rate shows the currency conversion level, while the spread affects the real transaction cost. A company should analyse not only the market rate, but also the actual terms on which it buys or sells currency.

When should an importer analyse the exchange rate?

An importer should analyse the exchange rate already at the sales price calculation stage and then monitor it until the actual payment for goods or services is made. The longer the time to settlement, the more important exchange rate control becomes.

When should an exporter analyse the exchange rate?

An exporter should analyse the exchange rate when preparing the offer, issuing the invoice, receiving payment and exchanging the currency into PLN. It is important to compare planned revenue with the actual value after conversion.

Can a company agree an exchange rate in advance?

Yes, for future commercial transactions, a company may consider agreeing an exchange rate in advance. On the market, such solutions are often associated with forward transactions or FX forward contracts, which allow businesses to determine an exchange rate for a future settlement.

In practice, the most important point for a business is to know the rate before the payment or incoming transfer date and to plan costs, revenue and margin more effectively. At AFORTI.BIZ, this is supported by Term – a solution for companies carrying out real commercial transactions in foreign currencies.

Summary

Exchange rates can have a real impact on company margins. For importers, the main risk is an increase in purchase costs. For exporters, it is the risk of a change in revenue value after conversion into PLN. In both cases, the spread, payment date, timing of exchange and the time between calculation and settlement also matter.

That is why importers and exporters should regularly analyse how exchange rates affect their prices, costs, revenue and margin. It is worth comparing the planned margin with the margin after the actual settlement, setting internal decision levels and planning currency exchange in advance.

If a company knows the future settlement date of a commercial transaction, it may consider solutions that increase exchange rate predictability and help manage profitability more effectively.

Want to better control how exchange rates affect your company’s margin? Explore currency exchange and Term on the AFORTI.BIZ platform to plan costs, revenue and future commercial settlements with greater predictability.

This material is for educational and informational purposes only. It does not constitute financial, tax or investment advice, a recommendation or an offer to enter into an agreement within the meaning of applicable law.