Woolworths lifts its half-year profit and dividend

However statutory profit, which last year included gains on demerger of drinks group Endeavour, was lower at $845 million.

Overall sales for the half year were up 4.0 per cent to $33.17 million.

"Our first half result benefitted from a focus on improving our customer shopping experience, restoring our operating rhythm, the non-recurrence of material COVID costs in the prior year and strong seasonal trading," Group CEO Brad Banducci said.

The gains were led by its core Australian supermarkets business, which saw sales rise 2.5 per cent to $24.39 billion, while earnings before interest and tax jumped 18.2 per cent to $1.44 billion.

The company has also lifted its fully franked interim dividend to 46 cents a share from 39 cents a year ago.