Novelis’ FY2024 net income from operations grows 9% Y-o-Y despite lower sales value

Novelis Inc., the premier manufacturer of flat-rolled aluminum goods and the globe's largest recycling company, disclosed its financial performance for the fourth quarter and fiscal year 2023-24 on May 6, 2024. The company highlighted that its results were predominantly bolstered by the advantages derived from recycling activities.

As per the report, the company’s net income attributable to common shareholder and net income from continuing operations stood at $166 million, reflecting an increase of 6 per cent year-on-year. Net income excluding special items was $179 million, up 2 per cent Y-o-Y.

However, Novelis’ full year net income attributable to common shareholder and net income from continuing operations edged a year-on-year rise of 9 per cent to $600 million. Net income excluding special items also increased 12 per cent over the year to reach $688 million.

Adjusted EBITDA also rose year-on-year in both Q4 and full year of 2024 by 28 per cent and 3 per cent, respectively, to come in at $514 million and $1.9 billion at the end of FY2025.

Novelis’ net sales value decreased 7 per cent and 12 per cent in Q4 and full fiscal year of 2024 to stand at $4.1 billion and $16.2 billion, caused by lower average aluminium prices but partially offset by higher total shipments.

Net cash flow provided by operating activities was $1.3 billion in fiscal year 2024, compared to $1.2 billion a year ago, primarily due to higher Adjusted EBITDA and improvement and metal price lag.

Steve Fisher, president and CEO of Novelis Inc., said: "Novelis delivered strong improvements in key financial metrics in the fourth quarter driven by lower operating costs, improved market demand and higher benefit from recycling. In doing so, we once again demonstrated the strength and resiliency of our business model, which is aided by our global presence and diverse product portfolio. We are building on our existing strengths with a number of expansion investments underway to capture sustainability-driven demand for lightweight and infinitely recyclable aluminum material, while enhancing profitability and shareholder returns."

Devinder Ahuja, executive vice president and CFO, Novelis Inc., said: "We have a strong track record of successfully deploying capital to grow the business, as well as a balanced capital allocation profile. We are generating robust operating cash flow to fund our organic investments currently under way, and remain focused on executing our growth strategy and delivering long-term value creation."