Sistema toy unit eyes 2010 profit on cost cuts

* Plans to return to net profit vs $99 mln loss in 2009

* Sees sales rising by up to 10 pct in roubles in 2010

MOSCOW, July 14 (Reuters) - Russia's top toy retailer Detskiy Mir, part of services conglomerate Sistema (SSAq.L), hopes to return to profit in 2010 on the back of cost cuts, and expects sales to rise up to 10 percent in rouble terms.

Detskiy Mir, Moscow's most famous children's goods shop, saw sales drop 27 percent in dollar terms in 2009 to $583 million and reported a net loss of $99 million, hit by a slump in consumer demand, rouble depreciation and higher debt costs.

"There are preconditions which allow to expect a return to a positive financial result this year," Chief Executive Alexei Chuikin said on Wednesday, saying cost cuts and a slower store rollout would help it to make its business healthier.

The Russian economy has this year returned to growth, but recovery has been slow, and while consumer confidence data published last week hit a 21-month high, it remained below its pre-crisis level. [ID:nLDE6660LQ]

In the first quarter, Detskiy Mir's (Children's World) sales grew 9 percent year-on-year after a 21 percent fall in the preceding quarter, although its bottom line stayed in the red.

This year, Detskiy Mir plans to focus on improvement of business processes and will refrain from active expansion, Chuikin said, adding it could open up to five stores in 2010.

Sistema plans to create in the third quarter a joint venture including Detskiy Mir and a global toy retailer, and had mentioned Toys R Us [TOY.UL] and Jumbo (BABr.AT) among possible partners. [ID:nGEE5B90W3]

As of end-March, Detskiy Mir's chain included 129 stores located in 68 Russian cities.

Sistema's main assets are Russia's top mobile phone operator MTS (MBT.N) and the Bashkir group of oil companies. It also spans banking, technology, tourism and healthcare and had sales of $18.8 billion in 2009. (Reporting by Maria Plis; writing by Maria Kiselyova; editing by Simon Jessop)