CVS Health Corp. reported lower profit in its first quarter amid pressure by more generic drugs and softer customer traffic.
Net income for the three months ended March 31 decreased 16.9% year over year to $953 million. CVS said the decline was primarily driven by the decline in operating profit, partially offset by lower interest expense of $31 million related to refinancing activity in the prior year as well as the improvement in the effective income tax rate, from 39.4% to 37.3%.
Net revenues rose 3% to $44.5 billion, up from $43.2 billion in the year-ago period. Revenues in the retail/LTC segment decreased 3.8% to $19.3 billion amid reimbursement pressure. The decrease was largely driven by a 4.7% decline in same-store sales, continued reimbursement pressure and an increase in generics.
Pharmacy same store sales decreased 4.7% and were negatively impacted by approximately 480 basis points…