Atlanta’s rolled aluminium firm Novelis reported results for the first quarter of fiscal year 2024 this week. Although numbers were lower on the year in many areas, company officials say they are better than expected under the prevailing market conditions.
In the first fiscal quarter, Novelis sold US$4,091 million in product, down on the year from last year’s total of US$5,089 million largely thanks to lower aluminium prices and a drop in total flat rolled product shipments. Novelis said that lower overall shipments fell due to a drop in beverage can shipments and unfavorable conditions in the building and construction market, among others.
Net income fell from US$306 million last year to US$156 million this year. EBITDA for the quarter totaled US$411 million, off from the previous year’s total of US$585 million. Adjusted EBITDA also fell in the quarter, from US$561 million last year to US$421 million this year. Lower shipments, cost inflation, and less favorable metal benefit from recycling pulled down that metric in the quarter.
Steve Fisher, President and CEO, Novelis Inc., said in a press release that numbers for the quarter were better than expected.
“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. We believe this can destocking activity is nearly complete, and remain focused on strengthening and expanding Novelis’ capabilities to support our customers’ growing demand for sustainable aluminum sheet.”
“We expect a steady recovery in shipments to drive continued improvement in Adjusted EBITDA over the remainder of this fiscal year,” predicted Devinder Ahuja, Executive Vice President and Chief Financial Officer, Novelis Inc. “This will enable continued capital deployment in support of our growth investments underway to meet growing customer demand.”