Companies exporting holiday decorations could have achieved a profit of up to 17% this year – if they had hedged their currency risk at the beginning of the year

By: Trademagazin Date: 2025. 12. 09. 11:52

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Although December is all about Christmas lights, glittering decorations and trade, for companies exporting holiday decorations, it is actually just the final step in a process that began months earlier. Production, material orders, contracts with foreign customers and logistics typically start in the first quarter of the year. This is when the financial decisions that determine the actual profitability of the holiday season are made.

The impact of exchange rates is well illustrated by the Hungarian example of 2025: between January and November, the forint strengthened by about 7% against the euro and by more than 17% against the dollar. For exporters, this means that all uncovered foreign exchange payments in November were automatically worth less in forints than at the beginning of the year.

However, those who had fixed the dollar or euro exchange rate in January with a forward contract would have received the payment at a much more favorable exchange rate, with terms fixed months in advance. For companies exporting Christmas decorations, this could have meant an increase in revenue of up to several tens of percent, with unchanged sales and the same production costs.

– The production cycle of Christmas decorations starts months before December, so companies need to analyze their currency needs in advance. Exchange rate fluctuations directly affect the profitability of transactions, especially during periods of high market volatility. Instruments such as forwards or options allow you to reduce risk, so the end of the year can be a time to celebrate successful sales, rather than worrying about the euro or dollar exchange rate.

– says Jacek Jurczynski, CEO of Akcenta CZ.

Exchange rate fluctuations can be a serious cost

The export and import of Christmas decorations is largely carried out in euros and dollars, so companies operating in this sector are particularly affected by changes in exchange rates. The risk is influenced by several factors: the volatility of global financial markets, the tense geopolitical situation, and ongoing trade disputes, which can significantly affect the forint exchange rate in a short time.

Managing foreign exchange risk for Christmas 2026

Akcenta experts emphasize that entrepreneurs need to think ahead about foreign exchange risk. Christmas production often starts at the beginning of the year, and a significant part of the products are exported, so planning a foreign exchange strategy for the entire season is key. Properly selected exchange rate protection instruments reduce uncertainty and ensure profit margins, regardless of exchange rate fluctuations of the EUR or USD against the forint.