Q1 Fiscal Year 2025 Highlights

• Net income attributable to our common shareholder of $151 million, down 3% YoY; Net income attributable to our common shareholder excluding special items was $204 million, up 32% YoY
• Adjusted EBITDA of $500 million, up 19% YoY
• Rolled product shipments of 951 kilotonnes, up 8% YoY
• Adjusted EBITDA per tonne shipped of $525, up 10% YoY

Novelis Inc., a leading sustainable aluminum solutions provider and the world leader in aluminum rolling and recycling, today reported results for the first quarter of fiscal year 2025.

"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 CEO, Novelis Inc. "I commend our teams for staying focused on driving operational efficiencies and serving our customers, while at the same time  continuing to advance organic growth projects underway as we strategically invest to capture strong mid- to long-term growth trends."

First Quarter Fiscal Year 2025 Financial Highlights

Net sales for the first quarter of fiscal year 2025 increased 2% 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 8% 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 our common shareholder decreased 3% versus the prior year to $151 million in the first quarter of fiscal year 2025 due to initial charges associated with flooding at our 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 our common shareholder, excluding special items, was up 32% year-over-year to $204 million. Adjusted EBITDA increased 19% 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% 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.

"We continue to take a prudent approach to capital allocation, investing in our future while maintaining a disciplined net leverage position," said Devinder Ahuja, executive vice president and CFO, Novelis Inc.

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.

Flooding in Sierre, Switzerland
On June 30, 2024, our plant located in Sierre, Switzerland, was impacted by exceptional flooding caused by unprecedented heavy rainfall. There were no injuries, as all employees were safely evacuated; however, water entered the plant premises and plant operations were halted. As a result of this event, the Company recognized fixed asset charges of $30 million and inventory charges of $10 million during the first quarter. Additionally, we expect to incur costs related to repairs, clean-up, business interruption, and other costs related to this event until the operations are restored at the facility. The plant is insured for property damage and business interruption losses related to such events, subject to deductibles and policy limits. We will record an insurance receivable based on the anticipated insurance proceeds when they can be reliably estimated. Our current timeline suggests we can restart production by the end of our second quarter. We estimate the total net cash impact from this event, after insurance, to be $80 million. The net impact to Adjusted EBITDA is estimated to be $30 million, the majority of which will occur in the second quarter.

First Quarter Fiscal Year 2025 Earnings Conference Call
Novelis will discuss its first quarter fiscal year 2025 results via a live webcast and conference call for investors at 7:00 a.m. EDT/4:30 p.m. IST on Wednesday, August 7, 2024. The webcast link, presentation materials and access information can also be found at novelis.com/investors. To view slides and listen to the live webcast, visit: https://event.choruscall.com/mediaframe/webcast.html?webcastid=ZAA0tjX3. To participate by telephone, participants are requested to register at: https://services.incommconferencing.com/DiamondPassRegistration/register?confirmationNumber=13747461&linkSecurityString=1d578dfe0b%20.