The 30-year-old operator of stores such as Octagon Computer Superstore, Microvalley, and Gadget King said in a regulatory filing that it finished 2024 with 245 outlets.
This was barely ahead of its pre-IPO store count of 207 branches and significantly lower than its goal to open 250 new stores (for a total of 457) by 2027.
In fact, Upson planned to open 50 stores in 2023 alone, but it opened fewer than that number in the last two years combined.
Apart from stores, it also leases eight warehouses across the country.
Filipinos favor on-site shopping for gadgets
Upson relies on physical stores to make most of its sales, and even with the growth of online shopping, Filipinos still prefer to buy gadgets and electronic supplies in a physical store.
In fact, 70 percent of sales are still expected via on-site channels this year, according to a previous study by the University of Asia and the Pacific – Center for Research and Communication Foundation (CRC).
“According to CRC, Filipinos still favor in-store shopping over online. They prefer to visit physical stores to check actual product quality and performance, especially for larger devices and equipment and more expensive purchases,” Upson noted in its annual report.
IPO proceeds mostly utilized
Halfway through its four-year expansion roadmap, Upson has yet to detail how it plans to address the widening gap between its actual store count and the targets outlined in its 2023 IPO documents.
The company has also spent most of its P1.4 billion in net IPO proceeds, with just P145.05 million remaining as of March 31 this year.
Upson went public on April 3, 2023, at P2.40 per share. It is currently trading at P0.70 apiece, valuing the business at P2.2 billion.
Profits post growth
Based on its annual report, net income last year grew 3.76 percent to P481.6 million, while revenues increased by 14.2 percent to P11.43 billion.
It declared P187.5 million in cash dividends last year, or P0.06 per share.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
