Mr. Elliott Etheredge reports

PUDO INC. REPORTS FY 2023 RESULTS

Pudo Inc. has filed audited financial results and operational highlights for the fiscal 2023 year ended Feb. 28, 2023 (FY 2023). Amongst the several exciting breakthroughs, it announced an all-time revenue high, up 77.3 per cent year-over-year.

"E-commerce returns strongly propelled the volume and revenue growth of Pudo during fiscal 2023. Increased efficiency and network leverage increased gross profit margin from 32.3 per cent to 38.5 per cent. We are very excited to now be expanding the e-commerce returns solution into the U.S. market and believe that this will continue to drive significant growth," commented Elliott Etheredge, chief executive officer.

The growth that Pudo experienced during FY 2023 led to an increase in e-commerce returns volume of 213.1 per cent. Pudo was successfully able to leverage relationships with SaaS (software-as-a-service) providers as well as direct retailer relationships to rapidly expand the direct returns program in Canada, and initiate a pilot program in the United States.

There are very exciting opportunities ahead of Pudo. The Canadian network is developed and able to handle much more volume. Pudo will be marketing this network to retailers and SaaS providers that have a presence in Canada and are looking to reduce their cost of processing returns. The company expects the development of the U.S. returns network to be the largest driver of growth for the foreseeable future. With the support of Pudo customers, we will be expanding this network starting with the largest metropolitan areas in the United States.

This transformation has led to a positive change in the profile of the business. In FY 2023, returns accounted for 32.8 per cent of revenue versus 22.2 per cent in FY 2022. Customer concentration was diluted, with the most significant customer providing 32.6 per cent of revenue in FY 2023 versus 53.5 per cent in FY 2022.

"As with any fast-growing company, we do anticipate facing challenges along the way. The market is evolving quickly and retailers are trying new ways of operating more efficiently. This impacted Pudo recently, as a large e-commerce retailer changed their business model moving significant volume and revenue away from Pudo, but the increased diversification of revenue will help offset the effect of that," commented Mr. Etheredge, CEO.

The company is currently working with its partners to develop the rollout plan for the U.S. network expansion in FY 2024. The company anticipates that the initial rollout will potentially double the company's overall revenue.

A complete copy of the audited consolidated financial statements and the management's discussion and analysis report for the year ended Feb. 28, 2023, can be found on the Canadian Securities Exchange website and on SEDAR.

About Pudo Inc.

Pudo is North America's only carrier-neutral parcel pickup and drop-off counter network, conceived to resolve the last-mile parcel-traffic-control gridlock that challenges North America's over $800-billion retail e-commerce sector and eliminate over $6-billion in door-dropped parcel theft.

Pudo's team of logistics and parcel traffic management experts have created a plug-and-play, pay-as-you-go platform and network of parcel pickup and drop-off storefront counters known as Pudopoint counters, strategically located very near to where people live, work and play.

The Pudo model reduces or eliminates crippling last-mile-related expenses for on-line retailers, marketplaces and carrier/delivery partners, with fulfilment and distribution solutions that include parcel storage and consolidation for click-and-collect deliveries, on-line returns, and the nearly 35 per cent of e-commerce parcels that are undeliverable on first attempt.

Membership in the Pudopoint counters network program offers consumers parcel receipt certainty, early/late/weekend pickup, return convenience, 100-per-cent elimination of door-drop parcel theft and a mobile home-away-from-home address network that goes wherever they do.

The Pudopoint counters network provides all carriers, retailers and consumers with badly needed cost controls, choice and convenience.

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