Paper maker DS Smith has revealed its profits fell by more than a quarter in the six months to October.

The company, which owns the Kemsley Mill near Sittingbourne, also revealed revenues across its group slipped to £1.95 billion from £1.97 billion.

Profit after tax for the group, was £71 million, down from £95 million over the same period last year.

This was affected by the decision to sell its StePac business in Israel and a reduction in sales of unconverted corrugated sheet and paper.

The company makes packaging across 34 countries and employs around 25,400 people. Its Kemsley Mill produces 800,000 tonnes of paper a year.

“Our outlook remains positive as the business continues to grow, despite the ongoing challenging economic environment in some markets..." - Miles Roberts, DS Smith

In the UK, revenues decreased 5% to £444 million while adjusted operating profit improved 2% to £47 million.

The company said its turnover declined as it sold less paper to external clients from its paper mill in Kemsley and lower external sales from its recycling business.

Instead, a greater amount of its paper produced was sold within different divisions of the company for the manufacturing of cardboard for its successful packaging business.

Chief executive Miles Roberts said: “Our outlook remains positive as the business continues to grow, despite the ongoing challenging economic environment in some markets.

“The progress we have made over the period, combined with the opportunities available for further growth, gives the board confidence in the prospects for the business, in line with the group’s medium-term financial targets.”

Kemsley Mill was originally built by Edward Lloyd in 1924 to produce newsprint. At that time, its four paper machines were the largest in the world.

The company has launched an investigation after one of its staff was injured while carrying out maintenance work.