US-based drugstore chain CVS Caremark has reported an 11.7% increase in net income to $3.8bn for the 12-month period ended 31 December 2012, as against net income of $3.4bn in 2011.

The surge in the full year profit is attributable to strong performance of retail chain.

Net revenue of the company grew 15% to $123.1bn in 2012, as against net revenues of $107.1bn during the previous year 2011.

Same store sales for the full year increased 5.5%, with pharmacy same store sales up 6.5% and front store same store sales up 3.4%.

Total revenues from pharmacy services for the full year 2012 increased 24.7% to $73.4bn, compared to $58.9bn in the previous year.

Fourth quarter ended 31 December 2012 also registered 6% increase in profits to $1.12bn, compared to net income of $1.06bn in the same period of 2011.

The chain reported net revenue growth of 10.9% to $31.4bn for the quarter of fiscal 2012, up from $28.3bn in the three months ended 31 December 2011.

For the quarter, the retail segment witnessed a revenue growth of 5.1% to $16.3bn, as compared to corresponding period in 2011.

Same store sales during the three months period ended 31 December 2012 increased 4% year-on-year.

Operating profit of the chain for the full year was recorded at $7.2bn, an increase of 14.2% over the previous year, while the same for the quarter, it grew 17.7% to $2.3bn.

Commenting on the result, CVS Caremark president and CEO Larry Merlo remarked that the company ended the year on a high with strong performances in both retail and pharmacy service businesses.

"We generated free cash flow of $5.2 billion in 2012, exceeding our expectations, and returned more than $5.1 billion to our shareholders through dividends and share repurchases," added Merlo.