2025 Universal Registration Document

5. 2025 Consolidated Financial Statements

Deferred tax assets and liabilities recorded in the balance sheet may be broken down as follows:

  31.12.2025 31.12.2024 31.12.2023
€ millions Deferred tax assets Deferred tax liabilities Deferred tax assets Deferred tax liabilities Deferred tax assets Deferred tax liabilities
Temporary differences 926.1 796.2 952.2 634.2 899.2 530.8
Deferred tax liabilities on revaluation of Sanofi   217.2   330.4   315.8
Tax credits and tax loss carry‑forwards 36.6   21.1   22.1  
DEFERRED TAX TOTAL 962.7 1,013.3 973.3 964.6 921.3 846.6

Deferred tax assets on temporary differences mainly relate to:

€ millions 2025 2024 2023
Provisions for pensions and early retirement

Provisions for pensions and early retirement

2025

42.8

Provisions for pensions and early retirement

2024

63.1

Provisions for pensions and early retirement

2023

73.2
Provisions for liabilities and charges

Provisions for liabilities and charges

2025

253.1

Provisions for liabilities and charges

2024

236.2

Provisions for liabilities and charges

2023

194.5
Intra-group margin included in inventories

Intra-group margin included in inventories

2025

332.3

Intra-group margin included in inventories

2024

312.4

Intra-group margin included in inventories

2023

273.6

Deferred tax liabilities on temporary differences mainly include intangible assets acquired under business combinations other than non-tax-deductible goodwill.

Deferred tax assets whose recovery is not considered probable are not recorded in the financial statements; such assets amount to €20.5 million at 31 December 2025 compared with €21.8 million at 31 December 2024 and €16.3 million at 31 December 2023.

Note 7 Intangible assets

7.1 Goodwill
Accounting principles

Business combinations are accounted for by the purchase method. The assets, liabilities and contingent liabilities of the Company acquired are measured at fair value at the acquisition date. Any valuation differences identified when the acquisition is carried out are recorded under the corresponding asset and liability items.

Any residual difference between the cost of an acquisition and the Group’s interest in the fair value of the identified assets and liabilities is recorded as Goodwill and allocated to the Cash Generating Units expected to benefit from the acquisition or the related synergies.

Goodwill generated on the acquisition of an associate is presented in the Investments in associates item.

For business combinations, the main accounting principles are set out below:

  • for each acquisition, the Group chooses whether to recognise the full amount of goodwill regardless of the ownership interest acquired, or an amount of goodwill corresponding to its interest in the acquired company (previously the only method allowed);
  • deferred tax assets recognised after the initial accounting is complete are included in profit or loss, and in contrast to previous practices, the amount of goodwill that would have been recorded had the deferred tax asset been recognised as an identifiable asset at the acquisition date is not deducted;
  • costs incurred in respect of a business combination are now expensed and no longer included in the acquisition cost;
  • the acquisition cost, which includes contingent consideration, is recognised and measured at its acquisition-date fair value. Subsequent changes in fair value, affecting in particular the contingent consideration recorded in liabilities, are recognised in Other income and expenses in the income statement and no longer treated as an adjustment to goodwill;
  • any previous interest held in the acquiree prior to the date control was obtained is now remeasured at its acquisition-date fair value, with the corresponding gain or loss on remeasurement recognised on the income statement;
  • purchase commitments for minority interests are recognised in financial debt at the acquisition-date fair value. Subsequent changes in fair value of the commitment are recognised by adjusting equity.