Lifestyle's results support rating
Global rating agency Moody's says that Lifestyle International Holdings Limited's results for 2012 are broadly in line with Moody's expectations, and the company's overall financial metrics continue to support its current rating of Baa3. The rating outlook remains stable.
"Against the backdrop of the slowdown in the retail markets for Hong Kong and China, Lifestyle's revenue grew 7.6% year-on-year to HKD5.5 billion in 2012, against +18.9% y-o-y in 2011," says Kaven Tsang, a Moody's Vice President and Senior Analyst.
Similarly, net sales proceeds grew only 6.9% y-o-y to HKD12.9 billion, mainly driven by a 7.8% y-o-y increase for its Hong Kong operations. Meanwhile, its adjusted EBITDA margin improved marginally to around 52% in 2012 from 51% in 2011, as Lifestyle managed to reduce its cost of sales, as well as general and administration expenses.