- CVS posted $268.7 billion in total revenues for 2020 – a 4.6% rise year-over-year.
- Its fourth-quarter revenue also rose, but its net income plummeted by more than 40%, partly because of the pandemic.
- CVS said its staff had administered more than 3 million coronavirus vaccines across the US so far.
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CVS posted rising annual revenues on Tuesday, but revealed a big drop in fourth-quarter income caused by the COVID-19 pandemic.
The drugstore chain said its total revenues for 2020 were $268.7 billion – a 4.6% rise year-over-year.
It also said its staff had administered more than 3 million COVID-19 vaccines.
Its fourth-quarter revenue also rose 4% to nearly $70 billion, but its net income dropped by more than 40%. This was caused by the impact of the COVID-19 pandemic and a loss on early extinguishment of debt of $674 million, the company said.
People bought fewer cough and cold products and ordered fewer seasonal flu prescriptions between September and December, it added.
CVS staff had administered around 15 million COVID-19 tests across the US so far, it added, and more than 3 million COVID-19 vaccines. It had also begun an initial rollout of in-store vaccinations at CVS Pharmacy locations in 11 states, it said.
In October, the Health and Human Services department announced that CVS and Walgreens would become the sole contractors for vast chunks of vaccine rollout across the US, and most states opted into the companies' partnership to get the vaccine into long-term-care facilities.
The rollout of the coronavirus vaccine could bring huge earnings potential to CVS.
The company could bring in up to $60 million in gross profit each from vaccinating the elderly in those facilities, as well as up to $650 million in gross profit from giving out vaccines in stores, analysts at investment firm Jefferies said.