LONDON, Feb 9 (Reuters) - Smith & Nephew, Europe’s biggest artificial hip and knee maker, reported a 7 percent drop in full-year trading profit, missing average forecasts, as tough market conditions in China and the Gulf States kept growth in check.
The company reported trading profit of $1.02 billion on revenue 1 percent higher at $4.67 billion on Thursday.
“Market conditions in China and the Gulf States together shaved more than a percentage point of growth off the group in 2016,” the company said, although it added that China had returned to growth in the second half.
It said it expected stronger revenue growth in 2017, with underlying revenue increasing by 3-4 percent and trading profit margin increasing by 20-70 points.
Analysts were expecting the company to report revenue of $4.69 billion and trading profit of $1.04 billion, according to a company-supplied consensus. (Reporting by Paul Sandle; editing by Kate Holton)