August 3rd 2023.
Novelis Inc., a leading sustainable aluminum solutions provider and the world leader in aluminum rolling and recycling, announced their results for the first quarter of fiscal year 2024 in an exchange filing on Thursday.
Q1 Fiscal Year 2024 Highlights included a net income attributable to common shareholder of $156 million, a decrease of 49 percent year-over-year (YoY). Adjusted EBITDA was recorded at $421 million, a decrease of 25 percent YoY. Rolled product shipments fell 9 percent YoY to 879 kilotonnes. Adjusted EBITDA per tonnes shipped totaled $479. Capital expenditures increased to support transformational rolling and recycling capacity investments.
Net sales fell 20 percent YoY to $4.1 billion for the first quarter of fiscal year 2024, mainly due to lower average aluminum prices, decreased flat rolled product shipments, and unfavorable economic conditions impacting some specialties markets in building & construction. Despite this, demand for premium automotive sheet remained strong, resulting in record automotive shipments in the quarter.
Net income decreased 49% YoY to $156 million in the first quarter of fiscal year 2024. This was due to lower Adjusted EBITDA, higher interest expense, and no recurrence of significant gains on unrealized derivatives that were recorded in the prior year. Adjusted EBITDA decreased 25 percent YoY to $421 million, driven by lower shipments, cost inflation, and less favorable metal benefit from recycling.
Commenting on the results, Steve Fisher, President and CEO of Novelis Inc., said “Novelis' diverse product portfolio and lower input costs delivered another sequential increase in quarterly Adjusted EBITDA and a higher Adjusted EBITDA per tonne than expected, even as inventory reduction activity across the beverage packaging supply chain continued in the quarter.”
Adjusted Free Cash Flow was an outflow of $349 million in the first quarter of fiscal year 2024, which was higher than the prior year period outflow of $73 million, largely due to an increase in capital expenditures. The company had a net leverage ratio of 2.7x at the end of the first quarter of fiscal year 2024. Total Liquidity was recorded at $2.4 billion, consisting of $1.0 billion in cash and cash equivalents and $1.4 billion in availability under committed credit facilities, as of June 30, 2023.
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