ALTA Group has completed its acquisition of the IDEA, Roda and Mercator retail networks from Croatia’s Fortenova Group, adding one of Serbia’s largest consumer businesses to its portfolio as the supermarket sector faces declining revenues, rising losses and financial restructuring pressures.
The transaction brings more than 335 stores across over 80 Serbian cities and municipalities under ALTA Retail, significantly expanding the group beyond its established financial services operations.
The acquired business, IDEA Marketi, generated approximately €780 million in operating revenue but recorded a net loss of €34.5 million, compared with €3.2 million previously. The purchase price and financing structure have not been publicly disclosed. The acquisition gives ALTA an immediate national retail presence, although the financial performance of the business presents a substantial challenge in restoring profitability alongside maintaining market share.
Revenue decline and growing losses
IDEA Marketi’s operating revenue fell by approximately 14%, from €910.9 million to €779.9 million, while earnings before interest, tax, depreciation and amortisation (EBITDA) declined by around 33% to €50.3 million. The resulting EBITDA margin of approximately 6.4% contrasts with a net loss equivalent to around 4.4% of annual revenue.
The figures indicate that the business continues to generate earnings before depreciation and financing costs, but these have not been sufficient to produce a net profit. Depreciation, financing expenses, other operating costs and the balance-sheet structure will therefore be important factors for the new owner. Published financial summaries also indicate approximately €120 million in current assets against €227 million in short-term liabilities, based on approximate euro conversions of reported dinar figures. Not all liabilities necessarily represent interest-bearing debt, and the composition may have changed before the transaction was completed. Nevertheless, the figures underline the importance of liquidity management, working capital and refinancing arrangements as ALTA assumes control of the business.
Financial services and food retail under one group
ALTA’s established interests in banking and financial services make the acquisition a significant expansion of its business model. Food retail operates on high sales volumes and relatively narrow margins, relying on inventory turnover, supplier credit, property costs and frequent cash receipts. A network generating nearly €780 million in annual revenue can produce substantial operating earnings, but these do not automatically translate into net profit or freely available cash after financing costs, investment requirements and working-capital obligations.
ALTA’s financial-sector experience could support treasury management, capital allocation and restructuring. However, the acquisition does not establish that ALTA Banka financed the transaction or that banking resources will be used to support IDEA Marketi. Any transactions between related companies would need to comply with applicable governance, related-party exposure and prudential requirements.
Key financial considerations include the acquisition’s equity contribution, inherited liabilities, refinancing requirements and the capital expenditure needed to modernise the retail network. A successful restructuring could establish a substantial new earnings base, while continued operating weakness could increase the capital required to support the business.
Supplier relationships and working capital
The acquisition extends beyond supermarkets to several supporting businesses. ALTA Retail has also taken control of Enna Fruit Grocka, a fresh-produce supplier; Super kartica, a customer loyalty business; M-Profil SPV, a property company; and mStart Business Solutions, an IT services provider. Together, these operations provide capabilities in fresh-food distribution, customer loyalty, retail property and digital infrastructure.
The business works with more than 600 suppliers, including Serbian agricultural producers and food manufacturers. The ownership change creates potential opportunities for suppliers if a financially stronger retail network improves procurement planning, distribution efficiency and long-term contracting. However, restructuring can also lead to renewed negotiations over payment terms, product listings, rebates and logistics arrangements.
These issues are particularly significant for smaller domestic producers whose liquidity depends on reliable payments from major supermarket chains. The financial performance of the acquired network therefore has implications beyond ALTA’s own investment portfolio.
Store modernisation and operational efficiency
ALTA has identified modernisation, operational improvements and innovation as priorities for the retail business. Potential measures include centralised procurement, improved inventory management, automated replenishment, energy-efficiency investments, store refurbishment and more data-driven product management.
The integration of mStart Business Solutions’ IT capabilities and Super kartica’s loyalty infrastructure could support pricing decisions, customer retention and demand forecasting. The investment will be tested in Serbia’s competitive retail market, where Delhaize Serbia, Lidl, DIS and Univerexport, among others, compete for household spending.
Regulatory intervention presents an additional operating consideration. Serbia’s restrictions on retail margins contributed to a difficult trading environment, although the extent to which regulation explains the individual company’s losses cannot be determined from headline financial results alone. ALTA must therefore pursue operating efficiencies while maintaining competitive prices and preserving the established market positions of IDEA, Roda and Mercator.
Fortenova divestment and domestic ownership
For Fortenova Group, the sale reflects a strategy of concentrating investment on markets where it believes it can maintain stronger competitive positions. For ALTA, the acquisition provides established brands, a large distribution network and immediate scale without requiring the construction of a new retail operation.
The transaction also transfers a major consumer-sector business from regional ownership to a Serbian-controlled investment group with significant financial-sector interests. Performance will depend on whether ALTA can stabilise revenue, recover EBITDA margins and improve liquidity while maintaining supplier relationships and the market positions of its retail brands. The acquisition establishes a nationwide retail presence, but converting that scale into sustainable profitability will require the new owner to address the financial weaknesses inherited with the business.
