MONTERREY, MEXICO — Lower volume in the foodservice channel weighed on financial results for the US business of tortilla maker Gruma SAB de CV in the fiscal 2024 third quarter.

For the quarter ended Sept. 30, Gruma USA saw operating income edge up 1.5% to $152.2 million from $150.5 million a year earlier. The company, however, posted decreases at the top line for its US unit. Net sales fell 2.4% year over year to $917.4 million from $939.5 million, while sales volume ticked down 1.7% to 398,000 tonnes from 405,000 tonnes.

“Volumes in the US continue to be pressured by the volume decline in the foodservice channel, which also affected revenues on a proportional basis and offset positive results at the retail channel during the quarter,” Gruma said. “We expect to gradually recover volume growth in the foodservice channel in upcoming quarters.”

The foodservice volume contraction was in line with the trend of previous quarters and reflected efforts to protect profitability amid inflationary pressures, according to Gruma.

“This was despite a good performance from the retail side of the tortilla and the corn flour businesses, which are still expanding favorably,” the company said of its US performance in the quarter. “Home cooking continues to support corn flour retail sales volume, reflecting the effects of inflation.”

Gruma USA’s third-quarter operating margin rose 70 basis points to 16.7% from 16% a year ago. The company said efficiencies drove a 4% decrease in the cost of sales to $524.9 million.

Gruma’s US business is led by Irving, Texas-based Mission Foods, whose line of value-added products includes tortillas, tostada, wraps, flatbreads (including naan and pita), tortilla chips, chicharrones snacks and salsa. Products also include a line of better-for-you tortillas and wraps.

“In our ‘better-for-you’ product category in the US, we are very pleased with its performance in the quarter, particularly during the last couple of months, although volume contraction in the foodservice channel continues to be an area of focus for the overall operation,” Gruma said.

Overall for the third quarter, Monterrey, Mexico-based Gruma SAB de CV posted majority net income of $128.7 million, down 5.5% from $136.2 million in the prior-year period. EBITDA grew 3.4% to $288 million from $278.5 million.

“Positive bottom-line results were still achieved in the third quarter of fiscal 2024, despite having a tough comparative base with a much stronger economy in 3Q23,” Gruma said.

Companywide, net sales in the quarter totaled $1.62 billion, down 4.2% from $1.69 billion a year earlier. Overall sales volume dipped 0.6% to 1.086 million tonnes from 1.093 million tonnes.

“The third quarter of the year followed the same trends we saw in the second quarter of fiscal 2024 in terms of market dynamics,” Gruma said. “The global retail tortilla space continued to show solid performance, with a positive evolution.