Brewer SABMiller today said half-year lager sales volumes rose by 12% across the UK and Europe.

However, the group cautioned that revenue growth would be 'partially' offset by higher costs.

SABMiller, which last week announced it would combine US operations with Molson Coors, saw a 12% hike group-wide in lager volumes in the six months to the end of September.

The brewing giant behind lagers including Pilsner Urquell and Miller Genuine Draft reported higher input and business investment costs would counteract the increase, but added that interim results were set to be in line with management expectations.

SAB warned earlier this year that it faced higher commodity prices and would need to rebuild its market share in South Africa after it lost its licence to brew and distribute Amstel in the region, which it said could impact 2008 revenues by around £41.5 million.