Dutch medical technology company Philips posted a net loss of €698 million last year, due mainly to a €1 billion out-of-court settlement to settle damages claims relating to sleep apnea apparatus in the US, the company said on Wednesday.

Philips posted a loss of €463 million in 2023.

Total turnover, at €18 billion, was up 1% despite a strong reduction in sales to China. This was, however, largely offset by growth elsewhere, mainly in the US, the company said.

Philips booked more orders last year and expects growth of between 1% and 3% this year, despite a “mid- to high-single-digit decline in China”.

Nevertheless, Philips shares plunged over 11% in early trading in Amsterdam, despite the announcement of a cash dividend.

The company’s legal woes in relation to its sleep apnea machinery are set to continue for some time to come. Earlier this year, a group of over 100 institutional investors wrote to Philips demanding compensation of €800 million for “significant losses to shareholders” over the sleep apnea scandal.