News: WOW UPDATE 1-Australia's Woolworths announces $1.5 bln buyback as annual profit jumps

(Adds details on trading in fiscal 2022, dividend)

Aug 26 (Reuters) - Woolworths Group (WOW) announced a A$2 billion ($1.45 billion) share buyback on Thursday and reported a 20% jump in annual profit as lockdowns sparked demand for household essentials.

Australia's biggest supermarket chain also said it had recorded strong sales growth so far in the new fiscal year as a return to lockdown in parts of Australia and New Zealand once again prompted people to stock up on essentials.

Sales at its Australian food business were up 4.5% in the first eight weeks of the financial year 2022, but the company joined smaller rival Coles Group (COL) last week in saying that the trading environment was volatile.

"Higher than anticipated sales growth has resulted from lockdowns across the country but particularly in our largest state, New South Wales, as in-home consumption has again increased," Woolworths said in a statement.

Net profit after tax from continuing operations before significant items climbed to A$1.50 billion in the year ended June 27, from A$1.25 billion a year ago.

On top of the buyback that followed the demerger of Endeavour Group (EDV) in June, Woolworths also announced a nearly 15% jump in its final dividend to 55 Australian cents per share. ($1 = 1.3748 Australian dollars)