PEI Cannabis Annual Report 2024

OPERATIONAL OVERVIEW PEI Cannabis has a 3-year Strategic Plan which guides its activities through to fiscal 2023-2024. The accomplishment of strategic goals is supported by an annual business plan that detail corporate objectives to be accomplished, and measurable targets used to evaluate the degree to which corporate objectives are being met. The following is an overview of the performance in each of the four (4) strategic pillars. STRATEGIC TARGET • BUSINESS RESULTS STRATEGIC TARGET To become a key contributor to PEI’s general revenue through business excellence and the continuous improvement in operational effectiveness and efficiency. CORPORATE OBJECTIVES 1. Grow sales revenues to continuously grow a top-line base for profitability and government transfers; 2. Grow top-line profitability on cannabis products through tactful pricing and supplier relations; 3. Continuously build on the effectiveness and efficiency of cannabis operations through strategic resource deployment; and 4. Grow output of total kilogram (kg) sales of dried cannabis equivalent weight to displace the illicit market.

Actual 2022-2023

Target 2023-2024

Actual 2023-2024

Target % 2023-2024

Target 2024-2025

PERFORMANCE MEASURES

Total Net Sales Revenue $22,500,680 $24,000,000 $24,966,165

104% $25,900,000

Gross Margin

27.1%

25.5%

27.4%

107.5%

26.5%

Net (Loss) Income

$2,909,096 $1,090,300 $3,035,779

278.4% $1,470,000

General & Administrative Expenses

$4,416,456

$6,108,500 $5,000,762

81.9%

$6,379,500

Dried Cannabis Equivalent Sales

4,094 kilograms

4,100 kilograms

5,074 kilograms

5,262 kilograms

128%

Application of Net Receipts

Net Receipts

Beverages

Other Income

Recognition of Capital Assets

Accessories

2.16%

1.98%

0.34%

4.95%

Topicals

Edibles

0.36%

Operating Expenses

5.85%

19.47%

Seeds

0.04%

Ingested Extracts

3.67%

Concentrates

14.83%

43.42%

Dried Flower

78.37%

24.56%

Pre-Rolled

Suppliers

12

PEICMC 2023-2024 Annual Report