Upson International Corporation, a leading IT retailer in the Philippines, reported that its consolidated net income increased four percent to ₱481.5 million last year from the ₱464.2 million earned in 2023.
In a disclosure to the Philippine Stock Exchange, the firm said the increase was attributable to the combined effects of the pre-opening costs of the additional 13 stores opened in 2024, the higher gross margin due to revenue mix, and higher product margin rates from increased promotion, including product bundling and price discounts.
Consolidated net revenues increased 14.23 percent to ₱11.44 billion in 2024 from ₱10.01 billion in 2023 after it opened 13 stores, representing a 5.60 percent growth in the store network from 232 in 2023 to 245 in 2024.
The revenue increase for 2024 also includes the revenues from the newly incorporated subsidiary iStudio, which contributed ₱1.5 million in 2024.
For the year ended 2024, the consolidated cost of sales increased by 14.24 percent from ₱7.93 billion in 2023 to ₱9.06 billion, mainly caused by the proportionate sales volume increase.
Consolidated gross profit amounted to ₱2.37 billion in 2024, an increase of 14.20 percent ₱ from the previous year’s 2.08 billion.
Meanwhile, consolidated operating expenses totaled ₱1.92 billion, representing a 16.83 percent cost-to-sales ratio. This is 14.83 percent higher than the operating expense of ₱1.68 billion in 2023.
Significant increases in operating expenses include personnel costs, merchant discount, and depreciation and amortization.
The consolidated finance cost reached ₱152.5 million, a 23.52 percent increase from the Parent Company’s finance cost of ₱123.5 million for 2023. This increase was mainly caused by the increase in liabilities under trust receipts due to continued store expansion activities in 2024.
Other income totaled ₱341.3 million for 2024, composed mainly of rebates, interest income, and other income.