(Reuters) – Australia’s largest supermarket chain Woolworths Group forecasts a lower first-half operating profit from its domestic food businesses. This is due to COVID-19 curbs being relaxed. It also ended the stockpiling which drove last year’s sales.

The Australian food market has seen sales slow since October’s restrictions eased. In addition, customers have returned to their “more usual shopping habits”. However, Woolworths stated that the performance was also affected by unusually rainy New South Wales weather.

Brad Banducci, the Group’s Chief Executive Officer stated that “the first half FY22 had been one the most challenging halves in recent memories due to far-reaching effects of the COVID Delta strain.”

Pandemic expenses were estimated at A$150 millions for half of the company’s workforce. Supply chain disruptions caused by the crisis could cost the firm an additional A$60 to A$70million, according to the company.

This year, it expects to earn earnings before income tax (EBIT), between A$1.19 billion – A$1.22billion ($870.4m-$849m) from the Australian food sector. That’s a drop from A$1.31billion last year.

($1 = 1.4017 Australian dollars)