Supermarket giant Coles lifted its first half earnings more than seven per cent thanks to growing food and liquor sales.

Coles lifted earnings before interest and tax 7.1 per cent to $895 million for the six months to December 31, with food and liquor sales up 5.3 per cent.

Meanwhile, parent company Wesfarmers recorded a 3.7 per cent slide in its net profit to $1.38 billion, though the result was weighed down by the sale of its insurance business.

Wesfarmers lifted its fully franked interim dividend four cents to 89 cents per share.

AAP