Domtar Corporation Income Statement 2020-2011 | UFS

Brief overview of financial performance at Domtar Corporation

The overview follows changes across a five-year period. Revenue at Domtar Corporation moved from $5.3 billion in 2015 to $3.7 billion in 2020. The total change was −30.6%, with a CAGR of approximately −7.1%. The business finished the period with a smaller revenue base.

The five-year change in gross profit reached −52.8%: from 1.1 billion dollars to 527 million dollars. Gross margin moved from 21.2% to 14.4%. The margin decline reflects a less favorable sales-and-cost structure.

The operating result measured by EBITDA moved from $715 million to $272 million, or −62%. Operating performance weakened relative to revenue. The EBITDA share of revenue changed from 13.6% to 7.4%. The margin contraction indicates weaker operating efficiency.

The final result was $142 million initially and −$127 million in the final year. The emergence of a loss requires close attention to costs and the operating model.

Over the period, capitalization shifted from 2 billion dollars to 1.6 billion dollars (−19.3%). The market became more cautious about the prospects of the business.

Summary assessment

The indicators point to a weaker financial profile. The weaker side of the profile includes a softer top-line trend, weaker gross profitability and a weaker final result. Further direction will depend on top-line growth, operating profitability, and net income.