Novelis Reports Fourth Quarter and Full Fiscal Year 2024 Financial Results
Novelis, a global leader in aluminum rolling and recycling, announced its financial results for the fourth quarter and the entire fiscal year 2024. Despite challenging market conditions, the company saw a significant increase in key financial metrics, driven by strategic investments and a focus on sustainable practices.
Fourth Quarter Fiscal Year 2024 Highlights:
- Net Income: Grew 6% year-over-year to $166 million, with an increase in Adjusted EBITDA of 28% to $514 million.
- Shipments: Rolled product shipments rose by 2% year-over-year to 951 kilotonnes.
- Revenue: Declined by 7% to $4.1 billion due to lower average aluminum prices, although this was partially offset by increased shipments, particularly in beverage packaging sheets.
Full Fiscal Year 2024 Highlights:
- Net Income: Decreased by 9% year-over-year to $600 million. This decline was primarily due to higher income taxes and interest expenses.
- Adjusted EBITDA: Increased by 3% to $1.9 billion, supported by improved product pricing and lower operational costs.
- Shipments: Declined by 3% to 3,673 kilotonnes, affected by lower demand in certain sectors, but offset by strong automotive shipments.
- Sustainability: Enhanced the recycled content in products to 63%, up from 61% the previous year.
The company's net leverage ratio stood at 2.3x, reflecting robust financial health and effective management of debt. Despite a 73% increase in capital expenditures to $1.4 billion, focused on expanding capacity to meet growing demand for sustainable aluminum solutions, Novelis generated strong operating cash flow of $1.3 billion.
Looking ahead, Novelis remains committed to its growth strategy, emphasizing sustainability and long-term value creation. The company plans to continue its focus on expanding its global reach and enhancing its product offerings to meet the rising demand for lightweight and infinitely recyclable aluminum material.
