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Aug 27 (Reuters) - Australia's Coles Group (COL) reported a 2.1% rise in annual profit on Tuesday, bolstered by strong growth in its supermarket sales volumes, and improved inventory management that effectively mitigated theft-induced stock losses.

Initiatives implemented to address stock loss issues have also helped the country's No. 2 grocer improve margins, while its expansion of private-label offerings boosted sales in its key supermarkets segment.

The country's second-largest grocer reported a net profit after tax from continuing operations of A$1.13 billion ($765.01 million) for the year ended June 30, beating a Visible Alpha consensus estimate of A$1.08 billion.

Revenue from sales at the supermarket business rose 4.3% to A$39.04 billion from a year earlier.

The more than 100-year-old Melbourne-based retailer declared a final dividend of 32 Australian cents per share, up from 30 Australian cents a year earlier. ($1 = 1.4771 Australian dollars)