You obvioulsy do not understand the business or play they are trying to make here. While in general I would agree with that comment in a situation like this if I was in your shoes looking from the outside, if you met with management and have followed the story you would know a few things:
1. That gross margin was based on the financial year which ended Dec 2019 and automation machinery was only implemented in like October last year. So you will have like 10 months of poor margins. This comment was made like 2 paragraphs below "The Company has also experienced a considerable improvement in operating margins on the back of the automation of the assembly process."
2. This is a pure revenue play
You may say that many businesses always say that they are a revenue play (especially SaaS platforms). The difference is here there is a clear benefit to a much larger player taking them out. Lets say Candy Club gets to 25,000 doors by the end of the year, how good would it be for another massive manufacturer of sweets to buy out Candy Club, put their candy in there at a much cheaper cost and remove corporate cost could you imagine ho wmuch money they would make?
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