General Mills, owner of Yoki, has a profit of $820 million in the first fiscal quarter

General Mills on Wednesday reported net income of $820 million for the first fiscal quarter of 2023, or $1.35 per share, which ended Aug.

The result represents an increase of 31% compared to the total of US$ 627 million, or US$ 1.02 per share, reported in the same period in 2021.

Adjusted net income was $1.11 per share, up from $0.99 a year earlier.

Analysts polled by FactSet had expected adjusted earnings of $1.00 per share.

Net revenue increased 4% year-on-year, totaling $4.72 billion in the period, in line with Wall Street estimates.

According to the company, selling and administrative expenses increased 4% in the period, to US$ 791.4 million.

General Mills executives argue that despite the costs, the company is seeing increased demand as families choose to eat at home instead of going to restaurants to save money.

“Significant inflation and reduced consumer purchasing power has led to an increase in home eating and other value-seeking behaviors,” Chief Executive Jeff Harmening said ahead of the company’s earnings call.

Net sales at stores in North America — its biggest source of revenue — amounted to $3 billion, up 10% from the same period last year.

In a press release, the company attributes the result to sales and the favorable net price mix, partially offset by the exchange rate effects.

Convenience store and foodservice sales advanced 21% to $496 million. The company reported higher sales revenue in the pet food segment, up 19% to $580 million.

For fiscal 2023, the company expects the economic health of consumers, the inflationary cost environment and supply chain disruptions to influence results.

According to the report, adjusted operating income is expected to be flat for the year or up to 3% (previous forecast was between a 2% decrease and a 1% increase), while adjusted earnings per share could increase between 2% and 5% ( before, a range from stable to 3% was expected.

General Mills estimates that organic net sales will increase by 6% to 7%, compared to the previous expectation of growth of 4% to 5%.