Case Study: Leading distributor of aroma chemicals and essential oils avoids FX gains and protects margins with Kantox Dynamic Hedging®

How a Chemicals company avoided the impact of FX gains & losses

Chemicals Company, a leading global distributor of aroma chemicals and essential oils, faced large multi-currency exposures because most raw materials are priced in USD and there was a typical 60‑day gap between purchase and settlement. Manual hedging was time-consuming and inefficient, and sales invoices also faced long settlement lags. To solve this, Chemicals Company engaged Kantox and adopted Kantox Dynamic Hedging® and Dynamic Pricing to automate its FX management.

Kantox connected to the company’s ERP/TMS, continuously monitored accumulated exposure and automatically executed hedges per predefined business rules, routing trades through MDPs and banks. The implementation took 4 weeks, now covers €9.5M monthly trading volume and delivers a >€300K annual ROI, while eliminating unwelcome FX gains and losses, protecting margins, enabling sourcing and pricing flexibility, and reducing manual effort thanks to Kantox’s automation.