Domino’s Pizza Enterprises is set to axe jobs after inflation dented its profit by 74 per cent in the year to June 30.

Group revenue rose 3.4 per cent to A$2.4 billion with total food sales up by a meagre 2.2 per cent, driven by higher menu prices.

Earnings before income and taxes fell 23.3 per cent to $201.7 million while net profit attributable to shareholders fell 74.4 per cent to $40.6 million.

The company said its stores are experiencing “historically” high levels of inflation in food, labour and energy costs, while customers were ordering less frequently.

The Australian headquartered group’s CEO and MD Don Meij said the business needs to get its ‘value equation’ right in response to high inflation.

“I want to be clear to our customers facing cost of living pressures, we do not expect to pass on pricing increases this year.”

He added earnings improvement in FY24 relied on rebuilding customer frequency and order volumes along with new products increasing orders from new and returning customers.

To cut costs and streamline the business further, the company says it has to axe jobs in Australia and internationally.

Meanwhile, the business has commenced the new financial year with strong same-store sales growth in Europe, Australia and New Zealand (up 6.6 per cent recently). Asia sales are currently below expectations (down 7.8 per cent) due to less frequent customer ordering.

“The key to our improved performance in FY24 is increasing the number of customers we serve each week,” said Meij.