Core sales increased 1.8% overall, with North America driving growth at 4.7%. However, high-growth markets experienced a 2.0% decline, led by China, indicating challenges in these regions.

The Water Quality segment saw a 2.7% increase in sales, while the Product Quality & Innovation segment remained relatively flat with a 0.4% increase. This suggests that Water Quality is currently a stronger growth driver for the company.

During the three-month period ended March 29, 2024, the Company divested a product line, which was reported in the Water Quality segment, and recorded a $15 million loss associated with the sale that is presented in other income (expense), net.

Selling, general, and administrative (SG&A) expenses increased to 31.6% of sales, up from 29.4% in the prior year. This increase is attributed to investments in sales and marketing growth initiatives, as well as the costs to operate as a stand-alone company post-separation from Danaher.

Research and development (R&D) expenses increased to 4.8% of sales, up from 4.6% in the prior year. This increase reflects management's commitment to innovation and developing new products and services.

The company states that it leverages VES to drive growth and continuous improvement. VES is a business management system that consists of a philosophy, processes and tools that guide what Veralto does and measure how well Veralto executes.

The 10-Q states that there were no material changes during the quarter ended March 29, 2024 to the risk factors previously disclosed in the “Item 1A. Risk Factors” section of the 2023 Annual Report on Form 10-K.

The company states that it operates in a highly competitive business environment in most markets, and the Company's long-term growth and profitability will depend in particular on its ability to identify, consummate and integrate appropriate acquisitions and identify and consummate appropriate investments and strategic partnerships, develop innovative and differentiated new products and services with higher gross profit margins, expand and improve the effectiveness of the Company's sales force, continue to reduce costs and improve operating efficiency and quality, effectively address the demands of an increasingly regulated global environment and expand its business in high-growth geographies and high-growth market segments.

Aggregate cash payments for dividends on Company common stock during the three-month period ended March 29, 2024 were $22 million. In the first quarter of 2024, the Company declared a regular quarterly dividend of $0.09 per share of Company common stock payable on April 30, 2024 to holders of record as of March 28, 2024.

In our Product Quality and Innovation segment we expect to see steady, modest recovery in the consumer-packaged goods markets as the year progresses.