Domino?s Pizza Enterprises Ltd posted $3.92 billion of sales ? a 4.6% year-on-year improvement, however its profit tumbled 12% to $165 million.

The pizza chain said rising costs of key ingredients and raw materials ate into profit.

?It is clear that this inflationary environment, more than any we?ve seen historically, requires a nuanced and multi-layer approach: reducing costs and maximising the benefits of scale, lifting menu prices where appropriate, and balancing these with ?inflation busters? that shows Domino?s consistently offers choice?, said CEO Don Meij.

The company also announced it?s expanding its footprint into three new markets ? Malaysia, Singapore, and Cambodia ? through the acquisition of 287 stores.

Shares in Domino?s surged 7.71% in early trade.