PEI Cannabis Annual Report 2025

OPERATIONAL OVERVIEW PEI Cannabis has a 3-year Strategic Plan which guides its activities through to fiscal 2024-2025. 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 2023-2024

Target 2024-2025

Actual 2024-2025

Target % 2024-2025

Target 2025-2026

PERFORMANCE MEASURES

Total Net Sales Revenue $24,966,165 $25,900,000 $26,419,622

102% $29,348,000

Gross Margin

27.4%

26.5%

26.9%

101.5%

26.4%

Net (Loss) Income

$3,035,779

$1,470,000 $2,454,995

167%

$2,390,400

General & Administrative Expenses

$5,000,762

$6,379,500 $5,702,603

89%

$6,378,500

Dried Cannabis Equivalent Sales

5,074 kilograms

5,262 kilograms

5,806 kilograms

6,200 kilograms

110%

Application of Net Receipts

Net Receipts

Beverages

Other Income

Accessories

Recognition of Capital Assets

2.05%

2.43%

0.43%

4.04%

Topicals

0.27%

Operating Expenses

Edibles

20.75%

5.79%

Seeds

0.13%

Ingested Extracts

3.28%

Infused Prerolls 5.91%

39.33%

Dried Flower

Concentrates

13.06%

77.20%

Suppliers

25.33%

Pre-Rolled

12

PEICMC 2024-2025 Annual Report