Hain Celestial produces organic food and personal care products in the US and Europe. Having grown since the late 1990s through a series of acquisitions, the group is now focussed on improving returns and has ample scope for restructuring. This will involve the disposal of some non-core operations and the consolidation of manufacturing sites. At the same time, more of the group's products are being accepted by the mainstream retailers, which will support sales growth. A joint venture with Hutchison's health care subsidiary, Chi-Med, to sell baby food in China, should start contributing to profits from 2011 onwards. Operating margins have the potential to double by 2012, and the stock trades at a discount to the major food and personal care companies.
