(Adds detail and background) Feb 17 (Reuters) - Australia's...

(Adds detail and background)

Feb 17 (Reuters) - Australia's Coles Group Ltd (COL) on Wednesday reported better-than-expected half-year profit, as coronavirus lockdowns boosted demand for household essentials and drove sales at the country's No. 2 supermarket chain.

Restrictions on movement to curb the spread of fresh waves of COVID-19 meant Australians stocked up on groceries such as food supplies and cleaning products instead of travelling and eating out, bumping up sales at supermarkets.

The more than 100-year-old firm said net profit after tax for the 27 weeks to Jan. 3 was A$560 million ($434.34 million), up from A$489 million a year ago, and above Jefferies' estimate of A$544 million.

Total sales for six months were A$20.38 billion, compared with A$18.85 billion last year, as revenue from the top earning supermarkets division jumped 7.3%.

However, it warned of a moderation or decline in sales in the division in the second-half and into fiscal 2022 depending on COVID-19 vaccine roll-out and its efficacy.

Comparable sales in the supermarkets division rose 5% in the second quarter, Coles said.

The declared an interim dividend of 33 Australian cents per share, more than the 30 Australian cents it paid last year, and slightly below Jefferies estimate of 34.5 Australian cents. ($1 = 1.2893 Australian dollars)