MEXICO CITY — Boosted by sharply higher sales, operating income of the North America business of Grupo Bimbo SA de CV surged in the second quarter ended June 30.

The North American business of Bimbo had operating income in the period totaling 4.07 billion pesos ($187 million), up 219%, from 1.28 billion pesos in the second quarter of 2019. Sales were 49.41 billion pesos ($2.3 million), up 36% from 36.24 billion pesos in the second quarter of 2019.

“I am very proud of the remarkable results during the quarter,” said Daniel Servitje, chairman and chief executive officer. “Now more than ever I see the strong benefit of being a diversified global company. This was only possible due to our teams’ commitment and our frontline associates’ hard work; they have all done an extraordinary job and I want to thank all of them for doing such a great job in these difficult circumstances.”

The 2020 operating profits of the North American business during the second quarter, at 4.07 billion pesos, exceeded profitability of the Bimbo Mexico business, at 3.19 billion pesos ($145 million). It was the first time in Bimbo’s history that the Mexican business was not Grupo Bimbo’s most profitable.

North American sales have exceeded Mexico’s consistently in recent years but margins have lagged. Margins in North America were helped by the sales increase and productivity savings across the region, partially offset by coronavirus (COVID-19) related expenses. The operating income figure for 2019 was depressed by a $55 million non-cash charge related to the adjustment of the multiemployer pension plans liability to reflect adjusted interest rates levels.

Accounting for the sales growth in North America was what Bimbo described as “outstanding volume growth and foreign exchange benefit.” Adjusted for foreign exchange swings, sales rose 12%.

“The bread, buns and rolls; breakfast; sweet baked goods; and snacks categories posted market share gains, while the retail and the e-commerce channels outperformed,” Bimbo said. “This was partially offset by weak volumes across the foodservice business, including QSR and schools that are temporarily closed, and lower traffic in channels such as convenience stores due to the COVID-19 outbreak.”

Net majority income of Grupo Bimbo SAB de CV in the second quarter was 2.58 billion pesos ($119 million), up 108% from 1.24 billion pesos in the second quarter of 2019. Sales were 86.41 billion pesos ($3.9 billion), up 20% from 72.09 billion pesos.

“Second-quarter results were outstanding; we were able to generate strong free cash flow and record levels of sales and adjusted EBITDA for a second quarter,” said Diego Gaxiola, chief financial officer. “Our hard-currency revenues represented more than 60% of our revenues and close to 60% of our adjusted EBITDA, reinforcing our global profile.”

Bimbo said during the quarter it completed the acquisition of the Paterna baking plant from Cerealto Siro Foods in Valencia, Spain. The plant bakes bread and buns under the Hacendado brand.