• Procter & Gamble beat quarterly earnings expectations but missed revenue estimates.
• The company said demand fell in its Greater China market.

Procter & Gamble on Friday reported weaker-than-expected revenue as lower demand in China again weighed on its sales.

Shares of the company fell 1% in premarket trading.

Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: $1.93 adjusted vs. $1.90 expected
• Revenue: $21.74 billion vs. $21.91 billion expected

P&G reported fiscal first-quarter net income attributable to the company of $3.96 billion, or $1.61 per share, down from $4.52 billion, or $1.83 per share, a year earlier.

Excluding restructuring charges and other items, the company earned $1.93 per share.

Net sales dropped 1% to $21.71 billion. Organic revenue, which strips out foreign exchange, acquisitions and divestitures, rose 2%, helped by higher prices.

The company reported flat volume for the quarter. The metric excludes pricing, which makes it a more accurate reflection of demand than sales. Like many consumer companies, P&G has seen demand for its products fall after several years of price hikes. Last quarter was the first time in more than two years that its volume increased.

In the U.S., P&G's volume grew in eight of its 10 categories, and the company isn't seeing any trade down to private-label products, CFO Andre Schulten said on call with press.

But it's a different story in Greater China, the company's second-largest market. The company called out volume declines in China for both its hair care and oral care segments. P&G is forecasting that it will take several quarters for demand to pick up again, although the Chinese government has recently laid out plans to boost the country's economy.

"The market continues to be weak and will be weak, we believe, for a number of quarters to come," Schulten said.

P&G's beauty business, which includes brands like Pantene and Olay, saw volume fall 2% in the quarter. In particular, its skin care segment struggled, with organic sales tumbling more than 20%. P&G blamed the steep decline on lower volume and decreased sales of its pricey SK-II brand, which has struggled ever since pandemic lockdowns.

Both P&G's health care and baby, feminine and family care divisions both reported 1% declines in volume for the quarter. But its baby care segment, which includes Pampers diapers, had an even worse quarter, with its organic sales falling by mid-single digits.

P&G's grooming division, which includes Gillette and Venus, reported 4% volume growth. The company credited innovation for its strong performance.

The company's fabric and home care business saw volume rise 1% in the quarter. The division includes Swiffer, Febreze and Tide products.

P&G reiterated its fiscal 2025 forecast. It anticipates core net earnings per share in a range of $6.91 to $7.05 and revenue growth of 2% to 4%.