CVS Caremark Profit Up 17% in Q4

New York City CVS Caremark Corp. said Thursday its profit rose 17% in the fourth quarter, as customers bought more CVS brand products during the recession.

Chief financial and administrative officer Dave Rickard also said he will retire at the end of 2009 after 10 years with the company. CVS plans to look at candidates from within its own ranks, as well as outside the company, as it searches for his replacement.

CVS Caremark said it earned $949.3 million in the last three months of 2008, up from $811.2 million a year ago. Revenue rose 10% to $24.14 billion from $21.94 billion.

CVS's drug store revenue grew 19% to $13.83 billion. Same-store sales grew 3.6% for the quarter, including a significant slowdown in December. Pharmacy same-store sales rose 4.5% in the fourth quarter, and same-store sales of non-pharmacy items, such as food and cosmetics, increased 1.8%.

The company also benefited from recent introductions of more profitable generic drugs in the third quarter of the year.

The company opened 52 new retail pharmacies, relocated seven and closed six. It also has 58 specialty pharmacies, 19 specialty mail-order pharmacies and seven mail-order pharmacies.

CVS Caremark said its profit rose to $3.2 billion for the year from $2.62 billion in 2007. Annual revenue grew 15% to $87.47 billion from $76.33 billion.