CVS Caremark Corp posted a higher quarterly profit on Monday as sales at its drugstores increased and it began to attract more business to its pharmacy benefits management unit.

Earnings rose to $1.05 billion, or 74 cents per share, in the fourth quarter from $949 million, or 65 cents per share, a year earlier.

Revenue climbed 7 percent to $25.8 billion.

Retail pharmacy sales rose 4.5 percent to $14.5 billion, while sales at drugstores open at least a year rose 4.9 percent.

Pharmacy services revenue jumped 14.5 percent to $13.5 billion. The PBM business, which grew when CVS acquired Caremark Rx Inc in March 2007, administers prescription drug benefits for employers and health plans and operates a large mail-order pharmacy. Its growth came a quarter after CVS said the PBM had lost about $4.8 billion in contracts heading into 2010, leading to the departure of the unit's president.

(Reporting by Jessica Wohl; Editing by Lisa Von Ahn)