Novelis released results for the first quarter of fiscal year 2024 this week. Although financials struggled in the period, the results for the first quarter of the fiscal year were better than expected.

In the first quarter Novelis returned net income attributable to its common shareholder of US$156 million, off by 49 percent on the year. The firm attributes the drop-off to a lower adjusted EBITDA among other financial situations. Adjusted EBITDA for the period was down by 25 percent to US$421 million, largely due to a drop in shipments and reduced returns from recycling aluminium.

On the production front, Novelis shipped 879 thousand metric tons of rolled product in the first quarter, which was 9 percent below last year’s opening quarter. The dip in shipments came largely due to lower beverage can shipments as well as an overall economic malaise that affected building and construction among others. The drop in shipments, along with a lower average price for aluminium, pulled down net sales by 20 to US$4.1 billion.

Steve Fisher, President and CEO, Novelis Inc., said in a press release that the results were better than expected despite the challenges.

“Novelis’ diverse product portfolio and lower input costs delivered another sequential increase in quarterly Adjusted EBITDA and a higher Adjusted EBITDA per tonne than expected, even as inventory reduction activity across the beverage packaging supply chain continued in the quarter. We believe this can destocking activity is nearly complete, and remain focused on strengthening and expanding Novelis’ capabilities to support our customers’ growing demand for sustainable aluminum sheet.”

“We expect a steady recovery in shipments to drive continued improvement in Adjusted EBITDA over the remainder of this fiscal year,” added Devinder Ahuja, Executive Vice President and Chief Financial Officer. “This will enable continued capital deployment in support of our growth investments underway to meet growing customer demand.”