Australian supermarket group Woolworths has reported a 12% increase in second-half profit despite tough competition from rival Coles Myer.

The company reported net profit of A$290m (US$208.8m) for the six months to 27 June, compared to $258m in the year-ago period.

Woolworths also announced that it expects chief executive Roger Corbett to stay on in that position within the company for another two years. Corbett announced that Michael Luscombe would become head of the company's supermarket division, replacing Tom Flood, who is leaving the company.

Woolworths currently has a market share of around 38%, compared to Coles Myer's 32%.