(Company corrects H2 adjusted EBITDA, paragraph 5)
* 2016 net profit up 9 pct
* H2 net profit fell 6 pct
* Private consumption still sluggish
* Capex up 73 pct on new stores, Kesko deal
MOSCOW, Feb 16 Russian food retailer Lenta
reported a 9 percent rise in annual net profit on
Thursday but warned a slower second half pointed to further
margin pressure in 2017 as consumers' budgets remain tight.
Despite signs of a recovery in the Russian economy due to a
rise in oil prices, private consumption, the biggest driver, has
yet to pick up.
Lenta reported a 9 percent rise in net profit to 11.2
billion roubles ($196 million) but noted its second-half
performance fell by 6 percent to 6.9 billion roubles.
"Continued deterioration in consumers' purchasing power
combined with increasing price sensitivity and promo orientation
is putting additional pressure on retailers," the company said.
Adjusted earnings before interest, taxes, depreciation and
amortisation (EBITDA) rose 13 percent to 31.8 billion roubles
and were up 11 percent in the second half to 18.1 billion.
Its 2016 core profit margin slipped to 10.4 percent from
11.1 percent as it cut prices to attract customers while
investing in new stores.
Capital expenditure jumped by 73 percent to 54.3 billion
roubles as Lenta opened 51 hypermarkets and 17 supermarkets and
acquired Kesko's Russian food retail business.
Lenta is holding a strategy day in London on Thursday where
it will provide store opening and capital expenditure guidance
for 2017 and new strategic goals.
At least one top shareholder, U.S. private equity fund TPG,
is considering reducing its stake in the company, sources told
Reuters this week.
($1 = 57.1300 roubles)
(Reporting by Maria Kiselyova; editing by Jason Neely)