Case Study: Australian Wine Business Company strengthens FX risk management with Rochford Capital

Australian Wine Business Company - Customer Case Study

Australian Wine Business Company, an Australian wine exporter with significant GBP-denominated sales to the UK, struggled to forecast and manage foreign exchange risk. After Brexit caused a sharp fall in GBP and hit AUD-equivalent revenues, the company’s hedging approach swung from hedging very little to hedging as much as possible, but both responses were reactive and still failed to give a clear view of underlying FX exposure. Rochford Capital helped address this challenge with FX risk management advisory services.

Rochford Capital analysed how FX risk was identified, quantified and forecasted across the business, mapped the costing and pricing process, and then set meaningful budget rates and a tailored FX risk management policy using a balanced mix of hedging products. This enabled Australian Wine Business Company to proactively manage FX risk, improve AUD cash flow predictability, and stabilise EBITDA, which also increased confidence in medium-term planning and made the business more attractive to investors.