Novelis announces record net sales of $17.1 billion for FY2022, buoyed by robust aluminium FRPs shipments of 3.858 Mt

Novelis Inc., the world’s leader in aluminium rolling and recycling, has announced its fourth quarter and full-year results of the financial year 2022. It has mentioned in the report a Y-o-Y hike of 21 per cent in net income from continuing operations for the quarter ended March 31 to $217 million, supported by record shipments of 987,000 tonnes compared with 983,000 tonnes during the same period last year.

Adjusted EBITDA, however, declined by 15 per cent over the year to $431 million during 4QFY22, owing to short-term operational cost challenges.

For the full fiscal year 2022, the company has announced a record income from continuing operations of $1.0 billion. That was an increase of 122 per cent from the previous year. Net income from continuing operations excluding special items also rose 66 per cent Y-o-Y to $934 million.

Shipments of aluminium flat rolled products registered a record figure of 3,858,000 tonnes, up by 7 per cent over the year, leading to net sales of $17.1 billion at the end of the year compared with $12.3 billion in FY2021.

Adjusted EBITDA for the full-year also grew 19 per cent Y-o-Y to $2.0 billion, bolstered by higher shipment and sales volume and favourable product mix despite constrained automotive shipments impacted by the semiconductor chip shortage this year.

Commenting on the robust financial results, Devinder Ahuja, Executive Vice President and Chief Financial Officer of Novelis Inc., commented: "Our record operational and financial performance in fiscal 2022 drove a reduction in net leverage to well within our targeted range and provides a solid footing to begin our next wave of transformational investments. We are well positioned to navigate current inflationary headwinds and global supply chain challenges, while keeping our focus on expanding capacity to support growing long term customer demand across end markets."

Novelis already has plans to expand its rolling and recycling capacity in response to customers’ high demand for sustainable aluminium products. For instance, on May 11, the company has announced an investment of $2.5 million in building a new low-carbon recycling and rolling plant in Bay Minette, Alabama, USA. It will be a highly advanced facility with an initial 600,000 tonnes of finished aluminium goods capacity per year.

For the first quarter of FY2023, Novelis expects Adjusted EBITDA to return to levels above $500 per tonne, even amid continuing impacts from semi-conductor shortages, customer impacts from COVID lockdowns in China, and global supply chain challenges and elevated energy costs.