BRUSSELS (Reuters). Heineken NV experienced a stronger than anticipated increase in the first quarter beer sales, as European bars reopened. This allowed the company to keep its 2022 forecast despite increased uncertainty due to the conflict in Ukraine.

According to the second-largest brewery in the world, beer volume increased 5.2% from last year. That’s more than the average 3.5% forecast by a company-compiled poll.

Europe saw a 11.5% increase, driven by the steady lifting of coronavirus restrictions. Heineken’s beer sales at bars and restaurants almost tripled.

Heineken, Sol and Tiger Lagers and Strongbow Cider are all Dutch products. Strongbow said that Russia’s invasion in Ukraine has added uncertainty to global economic outlook and commodities markets.

Heineken stated that “we expect rising inflationary pressures will impact household disposable income, and a consequent danger to beer consumption later this year.” This statement is a repeat of a position Heineken expressed before Russia invaded Ukraine. Moscow called it a “special military operations”.

Heineken claimed it was profiting from the hedging positions in 2021, but that there were rising costs and supply chain problems. It also faced pressure due to its exit from Russia.

Despite all this, the company did not change its goal of achieving a “stable, modest” increase in its operating profit margin for 2022.

Heineken said that inflation could cause a drop in beer consumption in February, casting doubt over its plans to boost its operating margins to 17% by 2023.

A Dutch brewer stated that input costs would increase by mid-teens%. This was due to barley being twice as expensive than a year earlier and aluminium increasing by approximately 50%. The freight and energy prices have also gone up sharply.