WOONSOCKET - CVS Caremark Corp., the largest provider of prescription drugs in the United States, saw its bottom line rise 23.3 percent to $956 million during the three months ended March 31, 2013, CVS announced Wednesday.
During the first quarter of 2013, CVS reported a net income of $956 million, or 77 cents per diluted share, a 23.3 percent increase from the $775 million, or 59 cents per diluted share, reported during the first quarter 2012.
As the company’s net income rose, sales remained relatively stagnant, dropping 0.1 percentage points to $30.76 billion year over year in the first quarter.
Revenue for the company’s pharmacy services segment remained stagnant during the first quarter, increasing 0.06 percent to $18.3 billion. The company’s retail pharmacy segment posted a 0.17 percent gain to $16.05 billion year over year in the first quarter.
In addition, CVS increased its dividend in the first quarter to 22 cents per share from 16 cents per share during the first quarter of 2012.
“I’m very pleased with our strong first quarter results. As expected, the influx of new generic drugs was a key driver across the enterprise, resulting in solid gross margin expansion as well as significant growth in operating profit and earnings,” CVS President and CEO Larry Merlo said in a statement.
Merlo added that his company’s operating profit grew “well beyond” expectations. “This out-performance was driven by stronger-than-expected prescription volumes due in large part to the strong flu season, strong specialty growth, and favorable purchasing and rebate economics,” said Merlo.