Royal Philips NV expects lower demand in China to continue to stymie growth for the Dutch medical equipment maker this year.

While Philips expects comparable sales to expand as much as 3% in 2025, the headwinds in the Asian nation prevent a better result, it said Wednesday. The company forecasts a mid- to high-single-digit sales decline in China this year.

“We see still China continue to be slow,” Chief Executive Officer Roy Jakobs said in an interview with Bloomberg Television. “When it will be back, there will be growth and there will be margin because it’s an attractive market in the long term.”

Philips flagged a deterioration in China in October, warning that the uncertainty in the Asian nation would continue during the next few quarters. The manufacturer has been grappling with lower consumer confidence there and anti-graft measures implemented across the country’s health care sector, impacting orders from hospitals.

Philips’ order intake rose 1% in 2024 — the first annual growth in three years — on the back of a strong showing in the fourth quarter and robust demand in markers including North America.

But the company missed analyst estimates on most metrics for the three months through December, including on overall sales and adjusted operating earnings.

US-listed shares of Philips sank 11.7% in premarket trading Wednesday.

Sales growth this year will be “back-end loaded,” Philips said, flagging a mid-single-digit decline in the first quarter due to the issues in China.

Demand in the Asian nation — which accounts for around 10% of Philips’ total revenue — will bounce back, Jakobs said, though he couldn’t forecast when that may happen. He cited strong momentum in the Americas.

Philips has been trying to rebuild investor confidence after settling US claims linked to faulty sleep apnea devices. The medical gear maker started recalling the devices in 2021 over concerns of disintegrating noise-canceling foam that patients inhaled. Last year, its two biggest investors Exor NV and Artisan Partners raised their stakes in the company after it paid less than expected to settle the claims.

The company received final approval for the recall-related medical monitoring settlement in the fourth quarter and the personal injury settlement became final this month. The settlements amount to $1.1 billion, with payout expected in the first half of the year, it said.

In January, Philips agreed to sell its emergency care unit to investment firm Bridgefield Capital to focus on potentially larger and more profitable businesses.