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Item 7A — Quantitative and Qualitative Disclosures About Market Risk
Bio-Techne Corp · 10-K · FY 2026 · Period ended Jun 30, 2026
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The Company operates internationally, and thus is subject to potentially adverse movements in foreign currency exchange rates. Approximately 33% of the Company’s consolidated net sales in fiscal 2026 were made in foreign currencies, including 17% in euro, 4% in British pound sterling, 5% in Chinese yuan, 3% in Canadian dollars, 2% in Swiss francs, and the remaining 2% in other currencies. The Company is exposed to market risk primarily from foreign exchange rate fluctuations of the euro, British pound sterling, Chinese yuan, Canadian dollar, and Swiss franc as compared to the U.S. dollar as the financial position and operating results of the Company’s foreign operations are translated into U.S. dollars for consolidation.
Month-end exchange rates between the euro, British pound sterling, Chinese yuan, Canadian dollar, Swiss franc and the U.S. dollar, which have not been weighted for actual sales volume in the applicable months in the periods, were as follows:
Year Ended June 30,
2026 2025 2024
Euro
High $ 1.19 $ 1.17 $ 1.10
Low 1.14 1.04 1.06
Average 1.16 1.09 1.08
British pound sterling
High $ 1.37 $ 1.37 $ 1.29
Low 1.31 1.24 1.22
Average 1.34 1.30 1.26
Chinese yuan
High $ 0.15 $ 0.14 $ 0.14
Low 0.14 0.14 0.14
Average 0.14 0.14 0.14
Canadian dollar
High $ 0.73 $ 0.74 $ 0.76
Low 0.70 0.69 0.72
Average 0.72 0.72 0.74
Swiss franc
High $ 1.30 $ 1.26 $ 1.19
Low 1.23 1.10 1.09
Average 1.26 1.16 1.13
The Company’s exposure to foreign exchange rate fluctuations also arises from trade receivables and intercompany payables denominated in one currency in the financial statements, but receivable or payable in another currency.
The Company does not enter into foreign currency forward contracts to reduce its exposure to foreign currency rate changes on forecasted intercompany sales transactions or on intercompany foreign currency denominated balance sheet positions. Foreign currency transaction gains and losses are included in Other non-operating (income) expense, net in the Consolidated Statements of Earnings and Comprehensive Income. The effect of translating net assets of foreign subsidiaries into U.S. dollars are recorded on the Consolidated Balance Sheets as part of Accumulated other comprehensive loss.
The effects of a hypothetical simultaneous 10% appreciation in the U.S. dollar from June 30, 2026 levels against the euro, British pound sterling, Chinese yuan, Canadian dollar and Swiss francs are as follows (in thousands):
Decrease in translation of earnings of foreign subsidiaries $ 1,199
Decrease in translation of net assets of foreign subsidiaries 57,040
Additional transaction losses (4,514)
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