* Sales hit by devaluation
* Cash flow generation allows stock repurchases
MOSCOW, June 18 (Reuters) - Russian juice and dairy firm Wimm-Bill-Dann reported on Thursday a 70 percent fall in first-quarter net profits on the back of foreign exchange losses, but showed better margins due to lower input cost.
The company said net income fell to $12.6 million, against $10.8 million forecast in a Reuters poll, while sales declined in line with the forecast by 29.4 percent to $516.8 million.
EBITDA margin was up to 14.1 percent from 12.4 percent a year ago. Analysts had expected margins to rise to 13.8 percent on the back of lower raw milk prices.
The company said sales were affected by exchange rate effects and partially offset by the improved sales mix.
Dollar revenue declined due to a 35 percent rouble devaluation seen in November-January while adjusted net income in roubles increased by 25.1 percent year-on-year.
The company said it would now aim to maximise the return from its marketing and advertising investments with a focus on gaining share in higher-margin categories.
"As of the end of the first quarter, our market share in juices increased 170 basis points in volume terms compared to the end of the first quarter 2008".
"Our market share in baby food improved 240 basis points in volume terms over the same period, while our market share in yogurts and desserts increased 140 basis points in volume terms over the same period of time"
It added it had generated over $85 million in free cash flow last quarter, allowed the firm to buy-back 3.6 percent of its own stock in the open market. (Writing by Dmitry Zhdannikov, + 7 495 775 12 42, dmitri.zhdannikov@reuters.com; Editing by Rupert Winchester)