Novelis Achieves Record Second Quarter Fiscal 2022 EBITDA
Atlanta-based rolled aluminum company Novelis released second quarter results for its fiscal 2022 this week. Strong demand and better prices for aluminum drove the quarter’s numbers to record highs.
For the second quarter, Novelis reported net income from continuing operations of US $ 239 million, up two-thirds over the year. Net income from operations other than special items was US $ 244 million, an increase of 54 percent for the year. Adjusted EBITDA for the quarter increased 22% to US $ 553 million, translating into a 16% increase in Adjusted EBITDA per tonne shipped to a record US $ 571.
Novelis shipped 968,000 metric tonnes in the quarter, a 5% improvement over the year. Net sales increased 38 percent to US $ 4.1 billion, largely the result of higher shipments and higher average prices for aluminum. Shipments increased due to increased demand for durable aluminum can packaging and demand for specialty aluminum products.
Novelis CEO Steve Fisher said in a press release that its wide array of aluminum offerings propelled the company to record numbers during the quarter.
“Our diversified portfolio of products with high recycled content allowed us to capture strong market demand and achieve another record quarter of EBITDA. As we face short-term supply chain challenges, we actively seek and implement new investment opportunities to meet growing customer demand for sustainable, low-carbon aluminum solutions. .
Novelis executive vice president and chief financial officer Devinder Ahuja highlighted the financial improvements his company made during the quarter.
“Since announcing Novelis’ long-term capital allocation framework earlier this year, we have reduced gross debt, improved net debt below our target level of 2.5x and repaid $ 100 million. of capital to our ordinary shareholder. At the same time, we have maintained adequate liquidity to effectively manage the working capital requirements of the business, while remaining firmly positioned to reinvest capital in new capacities and capabilities.
Novelis is a subsidiary of Hindalco Industries Ltd of Mumbai. Based in Atlanta, the company accounts for almost half of Hindalco’s consolidated sales. The world’s largest aluminum recycler, Novelis operates in ten different countries, employs approximately eleven thousand people and had net sales of US $ 11.2 billion in the most recent fiscal year.