Novelis reports 19% higher net sales in Q3FY21 attributable to robust aluminium shipments

On Wednesday, February 3, Novelis Inc., the world leader in aluminium rolling and recycling, reported a net income attributable to common shareholder of $176 million in the third quarter of the financial year 2020-21, up 64 per cent year-on-year. The company’s net income from continuing operations stood at $195 million, 82 per cent higher than in the same period last year.

Net sales increased by 19 per cent over the year to $3.2 billion in the third quarter of fiscal 2021, primarily due to a 17 per cent increase in total aluminium shipments and higher average aluminium prices. In the same quarter, Novelis’ flat rolled products shipments increased to 933,000 tonnes, reflecting the addition of acquired Aleris business and robust demand across the end-user markets, particularly beverage can.

Novelis completed the acquisition of Aleris on November 30, 2020, and integrated the two companies to drive a number of strategic benefits and allow for at least $180 million in potential annual synergies.

Adjusted EBITDA grew as well by 46 per cent to $501 million in Q3 FY2021 compared to $343 million in the prior year period.

"Novelis achieved record financial performance in the third quarter based on continued demand for innovative, sustainable aluminum solutions and outstanding operational performance across our expanded business," said Steve Fisher, President and CEO of Novelis Inc.

He added, "We are also making excellent progress on our strategic growth initiatives to drive long term value, by investing in new capacity and technology, entering new partnerships to solidify aluminum as the material of choice for our customers, and bringing new alloys to market that will drive the industry forward."

Novelis’ capital expenditures in Q3 FY21 stood at $333 million, down 23 per cent from the corresponding period last year. The company continued to maintain a very strong liquidity position of $2.4 billion at the end of December 2020.