May 3 (Reuters) - Russia's largest toy retailer Detsky Mir on Wednesday reported first-quarter adjusted profit up by a third helped by cost cuts.
Adjusted net profit rose to 137 million roubles ($2.40 million) on revenue up 28.3 percent at 21.06 billion roubles.
The 70-year-old retailer said its "efforts to further improve labour productivity and optimise rental payments" helped reduce operating expenses as a percentage of revenue by 300 basis points.
In 2016 the company reported a four-fold increase in net profit. It went public in February in Russia's highest-profile share sale since 2014.
In 2017, Detsky Mir, which means "children's world" in Russian, plans to open at least 70 new supermarkets and hypermarkets.
Chief Executive Vladimir Chirakhov said the company stayed on target in the quarter to post a double-digit adjusted EBITDA margin in 2017.
Shares fell as much as 10 percent at the opening on Wednesday, briefly dipping below the IPO price. They pared losses to trade down 3 percent as of 0748 GMT.
$1 = 57.0690 roubles Reporting by Anna Rzhevkina in Gdynia; editing by Jason Neely