Saturday, July 13, 2024

CVS Health fourth-quarter profit, revenue rise



Drug-store giant CVS Health's fourth-quarter net income rose 13% to $1.5 billion and its net revenue rose 11% to $41.1 billion, compared to the same period a year earlier.

The company's fourth-quarter earnings per share, excluding one-time items, were $1.53, equaling S&P Global Market Intelligence estimates.

CVS got a revenue boost from the completion in August of its acquisition of pharmacy services provider Omnicare.

But sales at the company's drug stores open at least a year — often used as a gauge to track a retailer's health — rose 1.7% for the full year and 3.5% for the quarter.

For the full year, same-store drug sales rose 4.5% while retail sales, known as front-end store products, fell 5% primarily because of the company discontinued the sale of tobacco products.

For the quarter, same-store drug sales rose 5% while retail sales declined 0.5%.

"We enjoyed a successful year in 2015, highlighted by excellent performance across our enterprise and two key acquisitions that support our strategy for growth," CVS CEO Larry Merlo said in a statement. "Overall, our leadership in multiple competencies enables us to provide superior value for patients, payors, and providers. We firmly believe that we have the right strategy for success in the evolving health care marketplace.”

The company now operates 9,655 stores after its $1.9 billion acquisition of big-box chain Target's 1,672 in-store pharmacies, a deal completed in December. CVS plans to renovate and rebrand those locations over the next six to eight months.

Excluding the Target locations, CVS opened 53 new stores in the fourth quarter and closed 19.

The company's pharmacy services segment posted increases in operating profit and revenue to $1.2 billion and $26.5 billion, respectively. The retail and long-term care division recorded increases in operating profit and revenue to $2.1 billion and $19.9 billion, respectively.


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Author: Red

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