Paperlinx's net loss was $266.7 million for the year to 30 June, 2012, compared to the $108 million loss to the end of June, 2011.
Investors were told on 26 June that the expected loss for the year would be $171 million.
Chairman Harry Boon said the results reflected a "company in transition" and said a restructuring plan would reduce Paperlinx's operating costs.
"These results reflect a company in transition as we respond to the reality of the continuing structural decline in paper demand, current weak market conditions and the continuing poor outlook in Europe," he said.
Paperlinx said the higher-than-expected loss was due to a board decision to "write-off all remaining goodwill on our European operations".
Interim chief executive Dave Allen said there was still a lot of work to do before the company returned to profitability.
"Our remaining businesses have significant positions in sizeable markets, and with a lower cost base, we are now better positioned to become a successful broad-based material supplier," Allen said.
Total sales declined to $4.11 billion, down from $4.67 billion.
