SYDNEY: Australia's second-largest supermarket chain Coles Group on Tuesday reported a 2% drop in first-half of fiscal 2022 profit, as pandemic-induced costs offset earnings from consumers stocking up on essentials during Omicron-driven COVID-19 lockdowns.

Coles and larger rival Woolworths WOW.AX have banked on demand from shoppers confined to their homes as they bought everything from groceries to toilet paper in bulk, but have borne extra expenses due to disruptions caused by lockdowns.

The company recorded COVID-19 related costs of A$150 million for the first half of the year, up A$45 million from a year earlier.

The company, which operates more than 800 stores in Australia, said half-year net profit after tax was A$549 million ($394.84 million), compared with A$560 million a year ago.

Coles declared an interim dividend of 33 Australian cents per share, in-line with the payout last year.

($1 = 1.3904 Australian dollars)

 - Reuters