Alexium International Group (ASX: AJX) has reported a 17.2% decline in revenue to US$2.29 million for the first half of FY25, as weaker US retail market conditions impacted sales in the bedding sector. The company recorded a net loss of US$1.65 million, an improvement from the US$1.96 million loss in the prior corresponding period, aided by lower financing costs following a capital restructuring.
Despite the decline in sales, gross margin fell only 2.2 percentage points, as Alexium continued its strategic shift towards higher-margin foam mattress applications. The company has also expanded its flame-retardant (FR) technology offerings, allowing it to target end-user brands directly and improve supply chain efficiency.
Alexium secured a US$932,550 loan from its largest shareholders, Colinton Capital Partners and Wentworth Williamson Management, to support working capital. The loan matures in June 2026 and carries an interest rate of 15%. The company ended the period with US$1.88 million in cash, slightly down from US$2.05 million at 30 June 2024.
Looking ahead, Alexium expects a recovery in the US mattress industry from 2025, driven by improved housing market conditions. The company is focused on diversifying its product offerings beyond textile-based mattresses into higher-volume foam applications, while refining its go-to-market strategy for FR solutions.
Alexium International develops and sells advanced performance materials, including phase change materials (PCM) for thermal management and flame-retardant solutions for consumer and industrial applications. The company operates primarily in the United States and serves partners in the bedding, apparel, and industrial sectors.
