News: WOW UPDATE 1-Australia's Woolworths sees lower earnings from food unit as lockdowns ease

(Adds details, CEO quote)

Dec 14 (Reuters) - Australia's biggest supermarket chain Woolworths Group (WOW) on Tuesday forecast lower first-half operating income from its domestic food business, as easing COVID-19 curbs brought an end to the pandemic stockpiling that drove its sales last year.

Sales in the Australian food business have slowed since restrictions began easing in October and customers returned to "more normal shopping habits", while unusually wet weather in New South Wales also dented performance, Woolworths said.

"The first half of FY22 has been one of the most challenging halves we have experienced in recent memory due to the far-reaching impacts of the COVID Delta strain," Group Chief Executive Brad Banducci said.

The company estimated pandemic-related expenses of about A$150 million for the half and said supply chain disruptions due to the crisis would cost it another A$60 million to A$70 million.

It expects earnings before income tax (EBIT) of between A$1.19 billion and A$1.22 billion ($870.4 million-$849 million) from the Australian food business, down from A$1.31 billion last year.

($1 = 1.4017 Australian dollars)