Companion animal revenue increased by 18% operationally, driven by growth in key dermatology, vaccine, and mAb products. Livestock revenue declined by 1% operationally, with growth in cattle and poultry offset by declines in other species.

The company modified its major product categories to include a category for pain and sedation products, previously included within other pharmaceutical products. This change reflects a strategic focus on these high growth areas.

Zoetis entered into a definitive agreement to sell its medicated feed additive product portfolio, certain water soluble products and related assets for $350 million, expected to close in the second half of 2024. This divestiture reflects a strategic shift in product focus.

R&D expenses increased by 14% YoY, driven by increased costs due to acquisitions, compensation-related costs, project investments, and other operating costs. This reflects a commitment to innovation and portfolio progression.

Restructuring charges and certain acquisition-related costs decreased by 81% YoY, primarily due to a reversal of certain employee termination costs as a result of a change in strategy from the 2015 operational efficiency initiative. This indicates improved operational efficiency.

The effective tax rate decreased to 19.8% from 20.9% in the prior year, primarily attributable to a higher benefit in the U.S. related to foreign-derived intangible income and a more favorable jurisdictional mix of earnings.

Approximately 43% of revenue was denominated in foreign currencies, with a 2% negative impact on YoY total revenue growth. This highlights the company's exposure to currency fluctuations, particularly in the Argentinian peso, Turkish lira, and Japanese yen.

The company acknowledges the potential impact of global macroeconomic conditions, inflation, the Russia-Ukraine conflict, geopolitical tensions with China, and global supply chain disruptions on its financial results.

Sales of livestock products may be adversely affected by outbreaks of disease carried by animals, which could reduce demand for the company's products or require halting production at key sites.

The company is a market leader in nearly all of the major regions in which it operates, and is one of the largest animal health businesses in emerging markets, as measured by revenue. This demonstrates a strong competitive position.

The company has a diversified product portfolio, with approximately 300 product lines sold in over 100 countries, providing stability to the overall business. This diversification helps mitigate risks associated with specific product lines or markets.

The company acknowledges the potential impact of competing products, including generic alternatives, on its products and its ability to compete against such products. This highlights the importance of innovation and product lifecycle management.

Gross margin remained flat YoY at 29.4%, despite unfavorable manufacturing costs and foreign exchange rates. This indicates effective cost management and pricing strategies.

Restructuring charges and certain acquisition-related costs decreased by 81% YoY, indicating improved operational efficiency and cost control.

Selling, general and administrative expenses increased by 8% YoY, driven by higher compensation-related costs, advertising and promotion costs, selling and distribution costs, and technology project investments.

R&D expenses increased by 14% YoY, reflecting a commitment to innovation and portfolio progression. This includes increased costs due to recent acquisitions and higher spend in project investments.

Revenue growth was driven by new products, particularly in the companion animal segment. This highlights the company's ability to successfully develop and commercialize new products.

The company acknowledges the risk of disruptive innovations and advances in medical practices and technologies, which could impact its competitive position. This highlights the importance of continuous innovation.

The company repurchased 1.8 million shares for $339 million during the first three months of 2024, excluding a $3 million accrual for excise tax on net share repurchases. This reflects a commitment to returning capital to shareholders.

The company paid cash dividends of $198 million in Q1 2024. This demonstrates a commitment to returning capital to shareholders through regular dividends.

The net cash used in investing activities was $131 million in Q1 2024, primarily due to capital expenditures. This indicates ongoing investments in the company's infrastructure and operations.

The 10-Q filing does not contain any specific information regarding ESG initiatives. This suggests that ESG is not a primary focus of the report.

The company acknowledges the potential impact of climate change on its activities and the activities of its customers and suppliers, but does not detail any specific initiatives to address climate-related risks.

The 10-Q filing does not contain any specific information regarding governance practices. This suggests that governance is not a primary focus of the report.

The company acknowledges the potential impact of global macroeconomic conditions, inflation, the Russia-Ukraine conflict, and geopolitical tensions with China on its financial results. This highlights the company's sensitivity to global economic trends.

Foreign exchange rate fluctuations had a negative impact on revenue growth, highlighting the company's exposure to currency risks.

The company acknowledges the potential impact of governmental laws and regulations affecting domestic and foreign operations, including tax obligations and changes affecting the tax treatment of income earned outside the U.S. This highlights the importance of monitoring regulatory developments.