Upson income drops despite record revenue

MANILA, Philippines — Listed IT products retailer Upson International Corp. posted record high revenue in 2023 but lower gross margin and higher expenses dragged down profit for the year.

Upson reported a 13.7-percent drop in its net income to P464.2 million last year as cost of inventories sold went up by 8.9 percent, resulting in a reduction in gross margin.

The company also saw operating expenses rise by 9.5 percent to P1.7 billion which went to the company’s strategic growth initiatives, specifically relating to store and warehouse network expansion.

Revenues soared to a record high of P10 billion, up 5.8 percent year-on-year, on the back of revenue growth from new stores which have operated for less than one year.

Computers were the primary driver of the revenue increase, led by mid-range laptops, while printing and communication also contributed positively.

By geography, Upson said markets remained broadly stable with Visayas posting the fastest growth, followed by North Mindanao.

“2023 was a year of investment and transition, evolving from being privately held to becoming a public company. For the first time in our history, revenues surpassed P10 billion as we increasingly reap the benefits from our expanding footprint,” Upson CEO Arlene Sy said.

“This strong foundation is what we will build on this year. Our focus is on serving our customers better to unlock the full potential of the new stores and deliver sustainable and profitable growth,” she added.

Upson ended 2023 with 232 stores, of which 25 new stores were opened during the year.

The company introduced 12 tech brands and started setting up Apple corners in select branches which brought customers greater access to the brand.

Upson carries 115 tech brands in its portfolio at present.