Sustainable aluminium solutions provider Novelis has reported a 2% increase in net sales for the first quarter (Q1) of financial year 2025 (FY25), reaching $4.18bn, compared to $4.09bn in Q1 FY24.
Despite this growth, net income attributable to the common shareholder saw a 3% decrease to $151m, compared to $156m in the same period last year.
This decrease in net income was attributed to initial charges from flooding at the company's Sierre, Switzerland, plant at the end of June, coupled with higher restructuring costs and an unfavourable metal price lag.
However, when excluding special items, net income saw a significant increase of 32% year-over-year to $204m.
Adjusted earnings before interest, taxes, depreciation, and amortisation for the company showed a robust increase of 19% compared to the previous year, reaching $500m.
This growth was primarily driven by higher volume and favourable product pricing, though it was partially offset by a less favourable product mix and increased costs.
The company's net sales for the quarter were bolstered by higher average aluminium prices and an increase in total shipments.
Total flat-rolled product shipments for the quarter rose by 8%, amounting to 951 kilotonnes, largely due to normalised demand for beverage packaging sheets following a previous period impacted by customer inventory reduction activity.
Novelis president and CEO Steve Fisher said: "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 normalised demand, our broad global presence and solid customer relationships.
"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."
Last month, Novelis announced a $90m investment to boost recycling capacity at its Latchford plant in the UK.
