(Adds details about Coles, background, dividend)
Feb 23 (Reuters) - Supermarket operator Woolworths Group WOW.AX said on Friday that its half-year profit rose about 15 percent on increased sales from a stronger Australian market.
Net profit from continuing operations for the six months to Dec. 31 rose to A$902 million ($707 million) from A$786 million a year earlier, the company said in a statement. Including one-off items, the company's net profit surged about 38 percent to A$969 million.
The company has been embroiled in a fierce price war with traditional rival Coles and German newcomer ALDI Inc ALDIEI.UL .
Coles, which is owned by conglomerate Wesfarmers WES.AX , clocked a 14 percent drop in earnings for the interim period. sales from continuing operations rose to A$29.81 billion from A$28.73 billion a year earlier, Woolworths said. Revenue from Australian Food, the company's main breadwinner, was about A$19.34 billion, up about 5 percent.
The company declared an interim dividend of 43 cents per share, compared to a dividend of 34 cents a year ago. ($1 = 1.2752 Australian dollars)