PEI Cannabis 2023 Annual Report

Store by Store Net Sales Analysis

PEI CANNABIS STOREFRONT

Total Net Receipts

% of Sales revenue

Charlottetown Summerside Montague O’Leary

$12,540,163 $5,302,090 $3,298,297 $1,165,139 $194,991 $22,500,680

55.73% 23.56% 14.66% 5.18% 0.87% 100%

Online TOTAL

Average Basket Size by Location

$40.46

CHARLOTTETOWN

SUMMERSIDE

$40.96

PLEASE DON’T DRIVE IMPAIRED

O’LEARY

$43.08

MONTAGUE

$41.88

PEI CANNABIS

$41.11

TACTICAL SUMMARY

PEI Cannabis recognizes the continued presence of a mature, sophisticated illicit cannabis market. Further, this unregulated market is still prominent in the PEI market, and due to the absence of any quality assurance measures or accountability requirements to customers and staff, it also has much lower costs to get product to market. Further, the Corporation acknowledges the pre-legalization customer preferences, and how they continue to shape the licit industry’s current and prospective product offerings (i.e., derivative products, genetics, etc.). To successfully compete with existing market sources, PEI Cannabis executed plans focusing on excellence in Category Management, Supply Chain Management, Retail Expansion, and Risk Management. PEI Cannabis is pleased to have exceeded its sales and profitability targets for fiscal 2023, and more importantly the corporation has achieved success related to incremental illicit market displacement. However, it has also identified some key challenges and opportunities in terms of achieving sustainable outcomes in the medium-to-long term.

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PEICMC 2022-2023 Annual Report