“Novelis delivered meaningful year-over-year improvement across a number of financial metrics in the quarter, led by a double-digit increase in beverage packaging shipments benefiting from normalized demand, our broad global presence and solid customer relationships,” said Steve Fisher, president and chief executive officer, Novelis Inc.
First Quarter Fiscal Year 2025 Financial Highlights
Net sales for the first quarter of fiscal year 2025 increased two percent versus the prior year period to $4.2 billion, mainly driven by higher average aluminum prices and higher total shipments. Total flat rolled product shipments increased eight percent to 951 kilotonnes in the first quarter of fiscal year 2025 versus the prior year period, due primarily to normalized demand for beverage packaging sheet compared to the prior year, which had been impacted by customer inventory reduction activity.
Net income attributable to the firmʼs common shareholder decreased three percent versus the prior year to $151 million in the first quarter of fiscal year 2025, due to initial charges associated with flooding at the Sierre, Switzerland, plant at the end of June, as well as higher restructuring and unfavorable metal price lag, largely offset by higher Adjusted EBITDA. Net income attributable to Novelis common shareholder, excluding special items, was up 32 percent year-over-year to $204 million. Adjusted EBITDA increased 19 percent versus the prior year to $500 million in the first quarter of fiscal year 2025, primarily driven by higher volume and favorable product pricing, partially offset by less favorable product mix and higher cost. Adjusted EBITDA per tonne increased 10 percent year-over-year to $525.
Net cash flow provided by operating activities was $74 million in the first three months of fiscal year 2025, compared to an outflow of $32 million in the prior fiscal year period, primarily due to higher adjusted EBITDA and favorable changes in working capital. Adjusted free cash flow was an outflow of $280 million in the first three months of fiscal year 2025, an improvement compared to the prior year period outflow of $349 million due to higher cash flow from operating activities. Total capital expenditures were $348 million for the first three months of fiscal year 2025, primarily attributed to strategic investments in new rolling and recycling capacity under construction. The company had a net leverage ratio (Net Debt / trailing twelve months (TTM) Adjusted EBITDA) of 2.4x at June 30, 2024.
The company had a total liquidity position of $2.2 billion, consisting of $886 million in cash and cash equivalents and $1.3 billion in availability under committed credit facilities, as of June 30, 2024.
