2016-2017 PEILCC 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 2016-2017

Target 2016-2017

% 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, 2015 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

108,007,179 105,400,000 102.5%

Gross Profit

33,391,435 33,000,000 101.2%

Revenue Per Litre

8.69

8.69

100.0%

Spirits

37.14

34.42

107.9%

Beer

5.57

5.45

102.2%

Wine

15.75

15.24

103.3%

Wine Coolers

7.01

7.01

100.0%

Spirit Coolers

7.32

7.78

94.1%

Draught

3.86

4.29

90.0%

Net Income

20,792,045 20,785,600 100.1%

Operating Expenses as a % of Gross Receipts

13.98% 13.93% 100.4%

Shrinkage as a % of Gross Receipts

0.01% 0.02% 50.0%

Return to Government*

39,943,962 39,425,600 101.3%

Inventory Turnover**

Warehouse

82.0

79.0

103.8%

Stores

34.5

34.0

101.5%

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

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PEILCC 2016-2017 Annual Report