Novelis Inc. (wholly owned subsidiary) of Hindalco Industries Limited a leading sustainable aluminum solutions provider and the world leader in aluminum rolling and recycling, on Thursday announced its results for the first quarter of fiscal year 2024, the company announced through an exchange filing.
Q1 Fiscal Year 2024 Highlights
i) Net income attributable to common shareholder of $156 million, down 49 percent YoY.
ii) Adjusted EBITDA of $421 million, down 25 percent YoY.
iii) Rolled product shipments of 879 kilotonnes, down 9 percent YoY.
iv) Adjusted EBITDA per tonnes shipped of $479.
v) Increased strategic capital expenditures to support transformational rolling and recycling capacity investments underway.
Net Sales
Net sales decreased 20 percent versus the prior year period to $4.1 billion for the first quarter of fiscal year 2024, primarily driven by lower average aluminum prices and a 9 percent decrease in total flat rolled product shipments to 879 kilotonnes, partially offset by increased product pricing and favorable product mix. The decrease in shipments is mainly due to lower beverage can shipments, as well as unfavorable economic conditions impacting some specialties markets, mainly in building & construction. However, demand for premium automotive sheet remains strong and led to record automotive shipments in the quarter.
Net Income
Net income attributable to common shareholder decreased 49 versus the prior year to $156 million in the first quarter of fiscal year 2024, due mainly to lower Adjusted EBITDA, higher interest expense, and significantly higher gains on unrealized derivatives in the prior year that did not recur. Adjusted EBITDA decreased 25 percent versus the prior year to $421 million in the first quarter of fiscal year 2024, primarily driven by lower shipments, cost inflation, and less favorable metal benefit from recycling. These factors were partially offset by higher product pricing and favorable product mix.
"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,” said Steve Fisher, President and CEO, Novelis Inc.
Adjusted Free Cash Flow was an outflow of $349 million in the first quarter of fiscal year 2024, higher than the prior year period outflow of $73 million due primarily to a planned three-fold increase in capital expenditures. The company had a net leverage ratio (Net Debt / TTM Adjusted EBITDA) of 2.7x at the end of the first quarter of fiscal year 2024.
The company had a strong Total Liquidity position of $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.
