Procter & Gamble recently announced its earnings for the first quarter of 2025, and the news wasn’t great. Sales in China, the company’s second-biggest market, dropped by 15%. This is due to economic struggles like falling home prices and rising unemployment rates. People are spending less, which means fewer sales for P&G’s products like shampoo and diapers. The company’s finance chief, Andre Schulten, said the market will stay weak for a while.

P&G’s overall revenue was $21. 74 billion, slightly less than expected. Their net sales dropped by 1%. However, prices went up, so organic revenue rose by 2%. The volume of products sold stayed the same, which shows that demand isn’t growing much.

In the U. S. , things looked better. Sales volume increased in eight out of ten categories. But in China, sales got worse compared to the last quarter. P&G’s beauty and skin care brands, like Pantene and Olay, saw a big drop in sales. This is partly because of anti-Japanese sentiment affecting their SK-II brand.

Other divisions also saw drops. The baby care segment, including Pampers, had a tough quarter. P&G is trying to sell more expensive items, but that can’t make up for fewer sales. The grooming division, with brands like Gillette, did well. So did the fabric and home care business with products like Swiffer and Tide.

P&G’s earnings per share were $1. 93, a bit more than expected. They expect earnings to grow by 2% to 4% this year. But the China market is a big concern.

P&G’s Q1 Report: A Glimpse into China’s Slowdown

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