Atlanta’s rolled aluminium firm Novelis Inc. turned in lower numbers for the last quarter and full fiscal 2023, though company officers assured investors that the company’s fundamentals remain solid.
In the final quarter of the 2023 fiscal year Novelis had a net income of US$156 million, off by 27 percent on the year. Net income from continuing operations excluding special items fell by 7 percent on the year to US$175 million, while adjusted EBITDA was off by 6 percent on the year to US$403 million. Novelis shipped 5 percent less volume in the quarter, totaling 936 thousand metric tons.
For the full year, Novelis showed a 31 percent drop year on year of its net income to US$658 million, while net income from continuing operations excluding special items fell by 16 percent to UD$781 million. Adjusted EBITDA for fiscal year 2023 was off by 11 percent to US$1.8 billion, and the firm had an adjusted free cash flow from continuing operations of US$443 million. Product shipments in the fiscal year were off by 2 percent at 3,790 thousand metric tons.
Dev Ahuja, Executive Vice President and CFO, Novelis Inc., said in a press release that, despite the faltering financials, the company is continuing to weather the stormy aluminium market.
“While our results continue to be muted by near-term challenges, we have demonstrated that our business is resilient, with fourth quarter Adjusted EBITDA per ton improving significantly on a sequential basis compared to the third quarter and very strong free cash flow generation even as we increase capital investments for future growth. We are well positioned to navigate current market headwinds and will continue to maintain a disciplined approach to managing cash efficiently as we embark on our next phase of transformational growth.”
Novelis is a subsidiary of Mumbai’s Hindalco Industries Ltd. Based in Atlanta, the firm accounts for almost half of Hindalco’s consolidated revenue. The world’s largest recycler of aluminium, Novelis conducts operations in ten different countries, employs around eleven thousand people, and reported US$18.4 billion in net sales for the most recent fiscal year.