PEI Liquor Control Commission 2018 Annual Report

Goal 3 Financial Results

Goal To maximize net income within the policy guidelines established by the provincial government.

Objectives

1. Optimize return to government. 2. Grow revenue through effective planning and execution. 3. Continuously improve operational effectiveness and efficiency.

Performance Highlights

Audited 2017-2018

Target 2017-2018

% of Target

The commission set inventory turnover goals at the beginning of the fiscal year as part of its strategic plan. These turnover ratios were based on the year ended March 31, 2017 to measure inventory efficiencies. The commission has been better able to manage the days in inventory and the warehouse level in order to meet the needs of our customers. Store inventory turns are up slightly from last year which can be attributed to the increase in the number of products held in store inventory and necessary to fulfill customer demands. An improved store ordering process continues to keep store inventories in check and ensured better distribution and availability of inventory across the retail network. In addition, the central warehouse has been reconfigured to optimize space and manage warehouse efficiency.

Gross Receipts

$114,030,030 $109,800,000 103.9%

Gross Profit

$34,583,582 $34,100,100 101.4%

Revenue Per Litre

$8.91

$8.69

102.5%

Spirits

$38.13

$37.88

100.7%

Beer

$5.63

$5.68

99.2%

Wine

$16.73

$16.06

104.2%

Wine Coolers

$7.09

$7.15

104.2%

Spirit Coolers

$7.01

$7.47

93.9%

Draught

$2.46

$3.94

62.4%

Net Income

$21,377,733 $21,005,100 101.8%

Operating Expenses as a % of Gross Receipts

14.03% 14.21% 98.7%

Shrinkage as a % of Gross Receipts

-0.03%

0.01% 300.0%

Return to Government*

$41,385,656 $40,505,100 102.2%

Inventory Turnover**

Warehouse

68.9

82.0

84.0%

Stores

31.1

34.0

91.5%

* Inclusive of Net Income and health tax transfers to government ** Measured in days

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PEILCC 2017-2018 Annual Report