Novelis Announced Sequential Surge in Profitability

SEATTLE (Scrap Monster): Novelis, Inc. - the world’s largest recycler of used beverage cans, reported results for second quarter of fiscal year 2024.

The company reported net income attributable to common shareholders of $157 million, down by 14% over the prior year quarter. The net income excluding special items recorded decline by 11% year-on-year to $180 million. The adjusted EBITDA during the quarter dipped by 4% over the prior year quarter to $484 million, primarily driven by lower shipments, said the company press release.

During the first six months of the fiscal year, the net cash flow provided by operating activities stood at $290 million. This compares with $196 million in the prior fiscal year period. The adjusted cash flow was an outflow of $300 million in the first six months of the fiscal.

As of September 30, 2023, Novelis reported strong liquidity position of $2.3 billion, comprising of $1.2 billion in cash and cash equivalents.

Commenting on the results, Steve Fisher, president and CEO, Novelis Inc. noted that the company is pleased to see yet another quarter of sequential improvement in Adjusted EBITDA. The solid second quarter results demonstrate the resilience of its business model. The completion of the ongoing strategic investments in new rolling and recycling capacity will further strengthen its operations in the coming years, he added.