MONTERREY, MEXICO — Value-add products within Gruma SAB de CV’s portfolio continue to grow steadily in the United States, even as strong momentum mounts for private label products, according to the Monterrey-based maker of tortillas.

Operating income at Gruma USA in the second quarter ended June 30 totaled $152.2 million, up 14% from $133.9 million in the same period a year ago. Net sales decreased 1% to $921.6 million from $928.5 million, while sales volume dipped to 400,000 tonnes from 402,000 tonnes.

“To ensure Gruma’s long-term profitability, a client optimization strategy was implemented within the foodservice channel and as a result, there has been a temporary decline in volumes within this business segment,” the company said. “In the corn flour business, retail demand maintained an upward trend, as a result of more home cooking as opposed to dining, on the back of the effects of inflation and supported further by a stable recovery of Gruma’s industrial clients.”

Gruma said operating margin at Gruma USA increased 210 basis points during the second quarter to 16.5% from 14.4%. Meanwhile, cost of sales fell 5% to $521.2 million, resulting mostly from efficiencies, Gruma said.

Gruma said it spent $54 million on capital expenditures during the second quarter. During the quarter, the company allocated expenditures to maintenance and general upgrades across the company, particularly at GIMSA, as well as operational equipment replacement in the United States and construction of a new plant in China.